Prestige Biologics expected to be 2021's first bio IPO in KOSDAQ market

Prestige Biologics' key facility located in Osong, Chungcheong Province. / Courtesy of Prestige Biologics

Biopharma companies to lead IPO boom in year 2021

By Anna J. Park

As the bullish market conditions in bio and healthcare sectors look set to continue into next year, Prestige Biologics ― a Korean biopharma company focusing on CDMO (contract development manufacturing organization) manufacturing ― is expected to be the first bio company to be listed on the tech-heavy KOSDAQ market in year 2021. Over 7.22 million shares are slated to be offered through the IPO process.

Founded in 2016, the company keeps a strategic partnership with Singapore-based biopharmaceutical firm Prestige Biopharma, manufacturing biosimilar products developed by Prestige Biopharma, such as a biosimilar of Genentech's anti-cancer drug Herceptin. Prestige Biopharma's CEO Park So-yeon and COO Kim Jin-woo are Prestige Biologics' largest shareholders as well, each holding 21.72 percent of the company's shares. Prestige Biopharma is preparing its IPO at Korea's main bourse KOSPI next year as well.

While Mirae Asset Daewoo and Yuanta Securities Korea are currently working for Prestige Biologics' IPO process as underwriters, Mirae Asset Daewoo made its investment into the firm's pre-IPO stage back in 2017, when the firm's market value stood at only around 100 billion won ($91 million). The bio company was also invested in by various other venture capital firms, including Singapore's Octava and KAMUR Partners.

Now the company's market cap is estimated to be around 670 billion won at local over-the-counter markets, which is a six-fold growth over the last few years. If successful, the bio company's public offering is expected to positively impact the brokerage firm's investment banking performance next year.

NeoImmuneTech, SK Bioscience preparing IPOs

U.S.-based biotech firm NeoImmuneTech is another firm that's waiting for bourse operator Korea Exchange (KRX)'s approval to move onto the next phase of its upcoming IPO process early next year. The company is focused on developing novel immuno-therapeutics for treating immuno-oncology and infectious diseases; it is notably dedicated to discovering the workings of clinical-stage T cells, a type of lymphocyte that is the key white blood cell in charge of a person's immune system.

Korea-headquartered CDMO firm SK Bioscience is another big player that's grabbing investors' attention for their public offering in the early months of next year.

Currently the firm's market cap is estimated to be around 15 trillion won based on its stock prices traded at local OTC markets, while market insiders see the firm's market value would be at least over 3 trillion won, showing an intense level of market interests in the firm's IPO.

“Despite the ongoing further spread of COVID-19 in the country, both IPO subscription competition rates and the number of newly listed companies have been maintained at a high level. Market liquidity is expected to continuously flow into the IPO market for the time being, given that 52 companies are awaiting for their IPO evaluation approval,” Lee So-joong, analyst at SK Securities, said.