Reuters: IPOX® Analyst Lukas Muehlbauer on Ascentage Pharma’s IPO

IPOX® Research Analyst Dr. Lukas Muehlbauer, offered his perspective on the upcoming US IPO of Ascentage Pharma, a Chinese biopharmaceutical firm targeting a valuation of $1.75 billion. Ascentage, backed by Takeda Pharmaceutical, is seeking a US listing after its shares have already been trading on the Hong Kong stock exchange since 2019.

Commenting on the dynamics of this dual listing, Muehlbauer noted: "Compared to the U.S., the Hong Kong market is currently undervalued," adding that "there was a clear potential upside if investors recognize this valuation gap." This highlights a key factor influencing Ascentage's decision to pursue a US listing - the opportunity to tap into a potentially more receptive investor base.

Ascentage's IPO comes at a time when Chinese companies are cautiously returning to US markets after a period of reduced activity. As the first sizeable Chinese firm to pursue a US listing this year, its performance could signal the willingness of international investors to engage with Chinese companies.

Muehlbauer further highlighted the significance of Takeda's involvement: "The Takeda deal highlighted their main leukemia drug as potential best in class." This collaboration not only provides financial backing but also adds credibility to Ascentage's drug development program, particularly their leukemia treatment, olverembatinib, which is already approved in China.

Ascentage plans to raise $149 million by offering 7.3 million American depositary shares at $20.34 each. The company will list on the Nasdaq under the symbol "AAPG," with J.P.Morgan and Citigroup acting as the underwriters for the offering.

Read the full article on Reuters: https://www.reuters.com/business/healthcare-pharmaceuticals/takeda-backed-ascentage-pharma-targets-175-bln-valuation-us-ipo-2025-01-21/

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