The value of Chinese biotech company BeiGene plummeted on its Shanghai debut on Wednesday after generating almost $3.5 billion in the city’s biggest IPO of the year, reports Reuters. The company, which has posted consecutive years of losses, dropped over 15% in early trading, after opening 8.1% lower than its offer price of RMB 192.6.
The offering, the biggest float of a healthcare company in China in at least two decades according to Refinitiv data, comes amid growing concerns some Chinese companies could be ordered to delist from the US stock market.
BeiGene’s Nasdaq-listed shares have tumbled nearly 20% so far this month, as US securities regulators finalized rules to kick non-compliant Chinese companies off American exchanges in three years—a risk BeiGene flagged in its Shanghai share sale prospectus.
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