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BGI Genomics Raises RMB 547M in IPO

NEW YORK (GenomeWeb) – Chinese company BGI Genomics said today that it has gone public on the ChiNext, the high-tech board of the Shenzhen Stock Exchange, selling 40.1 million shares at RMB 13.64 per share in the offering, for a total of RMB 547 million ($80.6 million).

The company, a division of BGI Group, obtained approval for the IPO from the China Securities Regulatory Commission (CSRC) in May, after filing its IPO prospectus with the commission in December 2015 and updating it in March of this year.

Originally, the company had planned to raise RMB 1.7 billion in the offering, but it decided to lower the amount to maintain a price-earnings-ratio in line with its industry peers, according to a BGI spokesperson, who noted that not doing so would have required a special risk notice.

BGI Genomics CEO Yin Ye said in a statement that the proceeds from the IPO will allow the company to invest in new services, recruit top talent, and develop its lab infrastructure to service customers globally and to support continued growth and innovation.

BGI Genomics President Wang Jian added that the company plans to "dominate the market" in the field of genomics, "creating a bright future for all by bringing both social and economic benefits." He co-founded BGI Group in 1999 and said he would not sell any of his holdings in the company in the next five years.

BGI Genomics provides next-generation sequencing services and NGS-based clinical tests for prenatal screening, hereditary cancer testing, rare disease testing, and other applications. The company is headquartered in Shenzhen, and has branches and laboratories in other Chinese cities, including Beijing, Tianjin, Wuhan, Shanghai, and Guangzhou. In addition, it has offices and laboratories in Europe, North America, and the Asia Pacific region.

Following the public offering, BGI Genomics has 400.1 million shares outstanding. In 2016, the company's operating income was RMB 1.71 billion and it had a net profit of RMB 333 million, according to the Shenzhen Stock Exchange.