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Straits Times
4 days ago
- Business
- Straits Times
Mirxes, Singapore's billion-dollar biotech firm led by life sciences scholar Zhou Lihan, lists in Hong Kong
Mirxes CEO Dr Zhou Lihan, his wife Yeap Su Phing, parents and two children at the Hong Kong Stock Exchange in Central after the Singapore biotech firm launched its IPO on May 23. PHOTO: MIRXES – Singapore has produced its first billion-dollar biotechnology start-up, 25 years after it began formally building its life sciences industry. Mirxes, which invented and produces the world's first blood test kit to detect early stage gastric cancer, is helmed by Dr Zhou Lihan, a naturalised Singaporean from the country's maiden batch of life sciences graduates. He arrived on the Lion City's shores as a wide-eyed 15-year-old PRC (People's Republic of China) scholar, navigating life and studies in a foreign country. Today, the 42-year-old is chief executive officer and co-founder of Mirxes (pronounced 'm'raek'sis'). It is the first South-east Asian biotech start-up to achieve a valuation of more than US$1 billion (S$1.29 billion), when on May 23 it launched its initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX). The company's market capitalisation is HK$8.29 billion, or US$1.06 billion. It has been trading around HK$30 per share, up 28 per cent from its listing price of HK$23.30. It is also South-east Asia's first biotech firm to list on HKEX. The microRNA-based cancer-detection start-up, which was spun out of Singapore's public sector R&D agency A*Star in 2014, has yet to become a household name in the country. But it is already a big player in the regional biotech industry. Now, the company has reached a critical level in its development where it can build on its success only by leveraging on an expansive fund-raising platform with a mature base of investors familiar with the industry. That is why, instead of listing in Singapore, Mirxes opted to do so first in Hong Kong, Dr Zhou told The Straits Times. He does not, however, discount the possibility of Mirxes listing in Singapore eventually. Dr Zhou's life story in the Republic tracks closely with some of the country's strategic economic policies over the years. 'I left China in 1998 after learning, through the Suzhou-Singapore Industrial Park project, about the opportunity to take on a scholarship to come to Singapore,' the Suzhou-born Dr Zhou told ST in an unmistakably Singaporean accent. Dr Zhou (second from left) with his fellow PRC scholars studying in Singapore's Anglican High School in 1998. PHOTO: COURTESY OF ZHOU LIHAN The project was launched in 1994 for China to adapt the Republic's development experiences to its own context, and for Singapore to develop an external wing to its economy. The PRC scholarship system is a Singapore Government-sponsored scheme for top Chinese teenage students since the 1990s, aimed at having them eventually contribute to economic development and potentially set down roots in the country . Finding love at NUS After going through the local education system at Anglican High School and Temasek Junior College, Dr Zhou enrolled at the National University of Singapore (NUS) in 2003, among the first batch of life sciences students. The life sciences programme was introduced as part of a government initiative in 2000 to develop the Republic into a regional biomedical hub. 'Because I spent most of my formative years in Singapore, all my friends and family are in Singapore. I even met my wife in NUS on shuttle bus A2, heading from the arts faculty to (university hostel) Prince George's Park,' Dr Zhou recalled with a laugh. Dr Zhou (top row, second from left), with Associate Professor Too Heng-Phon (far right) and fellow researchers from Prof Too's lab during their university days in 2008. PHOTO: COURTESY OF ZHOU LIHAN His wife, a Malaysian-born Singaporean, was an NUS arts student whom he got to know better in the students' union , he explained. They have a son and a daughter, aged eight and three, respectively. The family, including Dr Zhou's parents who have also moved from Suzhou to Singapore , were at HKEX in the central business district to witness Mirxes' IPO launch on May 23. Mirxes' history dates back to Dr Zhou's days at NUS, where he obtained his PhD in biochemistry and molecular biology at the Yong Loo Lin School of Medicine in 2012. During his PhD studies, he, fellow scientist Zou Ruiyang and their mentor, Associate Professor Too Heng-Phon, developed the technology to detect microRNA (micro ribonucleic acid), the smallest genetic material ever found in living things. Dr Zhou with his mentor, Prof Too, on his graduation day in 2007. PHOTO: COURTESY OF ZHOU LIHAN Their research, which the trio took with them to A*Star when they joined the agency in 2010, proved so ground-breaking that they set up an enterprise three years later with the agency's support and a government grant to commercialise their technology. Thus, Mirxes was born: a three-person start-up with Dr Zhou as CEO, Dr Zou as chief technology officer, and Prof Too as chief scientific adviser, aimed at developing an accurate, affordable and easily accessible early detection system for various cancers and other diseases. In the decade since, Mirxes has grown into a 350-strong company with a presence in China, Japan, Malaysia, the Philippines and the United States, and partnerships with global biotech giants including Johnson & Johnson and Pfizer. Dr Zhou (left) and Mirxes' co-founder, Dr Zou Ruiyang, at the biotech startup in the initial years after it spun off from A*Star. PHOTO: MIRXES The firm's flagship invention, GastroClear, in 2019 became the world's first molecular blood test approved for early detection of gastric cancer in high-risk populations. It was developed in close collaboration with the Singapore Gastric Cancer Consortium. The test – available in Singapore for less than $150 at public hospitals or around $250 in private clinics – is less expensive and invasive than an endoscopy, the traditional diagnostic procedure for stomach cancer, which can cost between $400 and $3,000. GastroClear has an 87 per cent accuracy, better than any other blood-based tests for the detection of gastric cancer. Patients who test positive are recommended to undergo an endoscopy for more specific results. The test is less expensive and invasive than an endoscopy, the traditional diagnostic procedure for stomach cancer, which can cost between $400 and $3,000. PHOTO: NATIONAL UNIVERSITY HEALTH SYSTEM Listing in Hong Kong Months of careful consideration preceded Mirxes' decision to list in Hong Kong over Singapore. Ultimately, it came down to two key factors. 'Firstly, our flagship product GastroClear is focused on stomach cancer, a very Asian disease,' Dr Zhou said. 'China alone accounts for half of all stomach cancer cases worldwide.' The Hong Kong platform provides a gateway into mainland China, the biggest market not just for stomach cancer tests, but also for the scale and speed of cancer clinical trials to accelerate the firm's research and development efforts. 'So listing in (the Chinese territory of) Hong Kong makes sense, because the investors here will understand our product's value to them.' Secondly, he added, HKEX's dedicated biotech listing regime has built up an investor base that 'understands how to look at biotech firms' financials without getting scared off'. Mirxes is still in the red, reporting net losses exceeding US$92 million for 2024 – 30 per cent more than the previous year. It is already generating revenue, although the US$20 million it reported for 2024 is a 16 per cent drop from that in 2023. 'People get worried that Mirxes is losing money,' Dr Zhou said. 'But if we want to be competitive globally, we have to invest in R&D and innovation. But that's something that our South-east Asian investor base is not yet familiar with.' HKEX's investors, on the other hand, are no strangers to promising yet still-loss-making start-ups. Hong Kong in 2018 started allowing yet-to-be-profitable biotech firms to list on its main board under the exchange's Chapter 18A regulations, to attract companies in cutting-edge industries. Since then, more than 70 such firms – which would otherwise not have qualified to list – have launched their IPOs in the city, gaining access to much-needed funds to grow their fledgling technologies and innovations . Mirxes CEO Dr Zhou Lihan (right) with a Hong Kong Stock Exchange representative at the IPO ceremony in Hong Kong on May 23. PHOTO: MIRXES The 18A rules recognise these start-ups' potential for growth, granting them access to capital as long as they have one core product past the concept phase, HK$1.5 billion in expected market value, and two years of financial records, among other criteria. In Asia, biotech start-ups that have yet to bring in revenue can also choose to list on subsidiary boards that cater to such firms, like China's ChiNext, Singapore's Catalist and Korea's Kosdaq. But the drawbacks include lower trading volumes and hence lower funding , and less visibility . Rebuilding ties in China HKEX's listing reforms, like Chapter 18A, have over the years opened new pathways for a broader range of companies around the world to raise funds in the city. It is on track to be the world's top IPO destination by the end of 2025, according to Swiss investment bank UBS. Its IPO market has raised HK$76 billion so far in 2025, more than seven times that in the same period a year ago, Financial Secretary Paul Chan said on May 25. The city is further cementing its status as a leading fund-raising hub for the tech and biotech sectors. In early May, it set up a scheme to streamline the IPO process for such firms, offering them 'a more efficient pathway' to listing and allowing them to file confidentially to avoid drawing competitors' attention. But some companies seeking a Hong Kong listing may still face a lengthy approval process from the China Securities Regulatory Commission, under rules introduced in March 2023 that also pertain to firms with principal business operations in mainland China. Mirxes, which has laboratories in Hangzhou, filed to list in Hong Kong in July 2023. One of Mirxes' laboratories in Singapore. It has a presence in China, Japan, Malaysia, the Philippines and the United States. PHOTO: MIRXES Dr Zhou said that while his China background is 'definitely helpful' in bringing Mirxes to the world's second-biggest economy, 'honestly, I had to rebuild all my connections there as I had left China as a secondary school student'. These days, he is a 'weekend dad', travelling around mainland China, Hong Kong and South-east Asia for work and seeing his family in Singapore only on weekends. 'Most people – my parents included – will not be able to fully comprehend the technical details of what we do at Mirxes,' Dr Zhou said. The firm will allocate some of its IPO funds to promote awareness and the use of GastroClear in China and South-east Asia. The cash will also fund ongoing research into its colorectal and multi-cancer detection tests, among other plans. Reflecting on Mirxes' journey from fledgling start-up to IPO, Dr Zhou said the listing 'would not have been possible without the Singapore Government's strong support and consistent investment in life sciences over the years'. 'It proves a point that our Singapore technologies and companies are as good, if not better, than others,' he said. 'But we tend to be a little too humble, and not as patient .' The vibrant ecosystem of biotech firms in Boston or San Francisco, for example, was built up over 50 years, the CEO noted. 'In Singapore, we started only some 20 years ago … We are reaching a point where we should see more companies like Mirxes taking their next steps .' Dr Zhou hopes Mirxes' IPO will go a long way in enhancing the company's global credibility. 'If the public sees that this biotech firm has been vetted, has gone public, and everything about it is transparent and fully disclosed, that will add a layer of trust,' he said. 'And in the healthcare business, trust is very important.' Magdalene Fung is The Straits Times' Hong Kong correspondent. She is a Singaporean who has spent about a decade living and working in Hong Kong. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
23-05-2025
- Business
- Straits Times
More companies, including some from Singapore, eye listings in Hong Kong
More companies, including some from Singapore, eye listings in Hong Kong SINGAPORE – Initial public offerings have rebounded in Hong Kong over the past year, with even some Singaporean fims opting to list there instead of their home exchange. The shift follows a prolonged downturn in global IPO activity and comes as regional exchanges, including Singapore's, are stepping up efforts to attract listings and revitalise their equity markets. Companies on the Hong Kong Stock Exchange have raised US$8.4 billion from 22 listings so far in 2025, a bourse spokesperson said, making the exchange the world's second-largest IPO fundraising market this year. The bourse is reviewing around 150 IPO applications, while Deloitte expects 80 listings in Hong Kong this year, potentially raising about US$19 billion. Singapore firms are among those expressing interest to list in Hong Kong. One that has already taken the leap is biotech start-up Mirxes, which had previously considered listing in Singapore. Shares of the A*Star spin-off closed their first day of trading in Hong Kong on May 23 at HK$30, up 28 per cent from its listing price of HK$23.30, and giving the company a market valuation of more than US$1 billion. A Mirxes spokesperson told The Straits Times that the firm chose to list in Hong Kong 'because it has cultivated a strong ecosystem of investors who understand the biotech sector, including venture capital funds, private equity firms, cornerstone investors with healthcare expertise, and an increasing number of specialist biotech funds'. It also has a dedicated biotech listing regime, the spokesperson said. IFBH, which operates in Thailand but is incorporated in Singapore, submitted preliminary offer documents in April for listing in Hong Kong. The firm, which bottles coconut water under the 'If' brand in Bangkok, had initially submitted a notification to the Singapore Exchange (SGX) for a proposed IPO in March 2024, but opted to list in Hong Kong instead. IFBH noted that a Hong Kong listing better fits its business development strategy, given its strong connections to China, which is the company's largest market. In July 2024, Metasurface Technologies Holdings, a Singapore precision machining and welding services provider, raised HK$65.3 million in a Hong Kong IPO. This was followed by Synagistics, a Singapore e-commerce solutions provider, which became the first company to list in Hong Kong via a merger with a special-purpose acquisition company. Other notable IPOs in Hong Kong in 2025 include the US$5.3 billion listing of Chinese car battery manufacturer CATL – the largest listing globally this year – Chinese pharma giant Jiangsu Hengrui Pharmaceuticals, and bubble tea makers Mixue and Guming. Mr Edward Au, Southern Region managing partner at Deloitte China, noted that the IPO momentum in 2025 has been driven by renewed global interest in China-related opportunities, particularly in the artificial intelligence and innovation sectors. He noted that more than half the 150 Hong Kong IPO applications are from companies in technology, media and telecommunications, life sciences and healthcare. Chinese investors have also increasingly participated in the market as they diversify their offshore investment portfolios, while 'relatively modest' IPO pricing has helped sustain investor demand. At the same time, the Hong Kong dollar has also strengthened against the US dollar, encouraging further liquidity inflows. As a result, the Hong Kong market has consistently recorded daily trading turnovers exceeding HK$200 billion, with market valuations rising to more than 13 times the average price-to-earnings ratio, Mr Au said. Hong Kong has also made important reforms to its equities market that have elevated its appeal to issuers and investors. The most recent developments include a scheme to help specialist technology and biotechnology firms list, reducing the minimum difference between the price buyers offer and what sellers want for a stock and revising the fees charged for trade settlements. These initiatives have helped position Hong Kong as the second largest IPO market in the world in 2025, the bourse spokesperson said. Mr Paul She, head of capital markets at Forvis Mazars in Hong Kong, noted that improved investor sentiment has also helped fuel renewed interest in Hong Kong listings. 'For much of 2023 and early 2024, the Hang Seng Index hovered around 16,0000 to 18,000 points, which dampened investor confidence. With the market now recovering to levels closer to 22,000 points, investor sentiment has improved significantly,' he noted. Tighter regulatory conditions in China have also constrained IPO activity there, prompting many companies to consider Hong Kong as a viable alternative, Mr She added. Ms Lorraine Tan, Morningstar's director of Asia equity research, noted that recent approvals by China's government for Chinese companies to list in Hong Kong had been stalled for some time, leading to pent up interest in these firms. 'This interest rose with the unveiling of DeepSeek and as the US market fell in February,' Ms Tan said. She added that the availability of quality Chinese companies listing in Hong Kong, particularly those that are domestic consumer-focused and not directly sensitive to geopolitics, has helped lift investor interest. 'There is also hope that fiscal spending will continue to support the economy in China and mitigate trade war risks.' Hong Kong's increasing attractiveness as a listing hub is making it more challenging for the SGX, which has been stepping up efforts to boost its own IPO pipeline. Some, like Ms Tan, noted that Hong Kong is far ahead in the competition for IPOs: 'Hong Kong is a liquid and active market. Unfortunately, Singapore doesn't have the same liquidity, depth and breadth.' The SGX needs to deepen its investor pool to support trading volumes in order to attract more listings, especially those now favouring Hong Kong, said Mr Ooi Chee Keong, head of capital markets at Forvis Mazars in Singapore. 'Valuation multiples on SGX are often lower than (Hong Kong) and Nasdaq, which discourages tech companies.' He added that the SGX should identify specific industries or regions where Singapore holds a competitive edge and tailor its incentives to lure IPOs in those areas. 'Supporting local companies is also critical; when domestic firms hesitate to list, it sends a discouraging signal to international issuers.' Ms Tay Hwee Ling, accounting and reporting assurance leader at Deloitte South-east Asia, noted that there have been concerted efforts by Singapore's regulators to strengthen the market's competitiveness and its attractiveness to investors and companies seeking to list. 'While the full impact of these new measures remains to be seen, we anticipate they will contribute positively to the growth of Singapore's capital markets,' she added. Join ST's Telegram channel and get the latest breaking news delivered to you.
CNBC
23-05-2025
- Business
- CNBC
HK debutant Mirxes says China-Singapore 'dual engine' will drive growth amid global changes
Lihan Zhou, CEO and Co-Founder of Mirxes, a Singapore-based bio-test company, discusses the company's Hong Kong IPO and growth prospects.
Reuters
23-05-2025
- Business
- Reuters
China's Jiangsu Hengrui, Mirxes shares rise in Hong Kong debuts
SYDNEY, May 23 (Reuters) - Shares of Chinese companies Jiangsu Hengrui Pharmaceuticals and Mirxes Holdings ( opens new tab rose sharply on Friday in Hong Kong trading debuts after raising a combined $1.4 billion in separate listings. Pharmaceutical company Jiangsu Hengrui rose as much as 36% in its Hong Kong debut on Friday, after finalising its $1.27 billion listing at the top of the price range. Jiangsu Hengrui ( opens new tab is also listed in Shanghai. Mirxes, a cancer treatment company, saw shares open nearly 25% higher in Hong Kong after it raised $139 million in an initial public offering. Hong Kong's Hang Seng Index (.HSI), opens new tab was up 0.4% in early trading on Friday. The debuts cap one of the strongest weeks for Hong Kong's capital markets in the past year, with more than $6.5 billion of shares starting to trade led by electric vehicle battery maker CATL's $5.3 billion listing, the largest in the world this year. Bonnie Chan, CEO of bourse operator Hong Kong Exchanges and Clearing ( opens new tab, said on Tuesday more than 40 firms listed in mainland China, known as A-share companies, were exploring Hong Kong listings to access offshore funding to support international expansion plans.
South China Morning Post
16-05-2025
- Automotive
- South China Morning Post
Hong Kong IPOs on track to make May a merry month
Hong Kong's market for initial public offerings (IPOs) has come roaring back. Attractive valuations, strong liquidity and supportive government policies, what's not to like? Concerns about geopolitical tensions and a trade war have taken a back seat, at least for now. Certainly, a 90-day truce in the tit-for-tat tariffs battle between China and the United States has helped sooth nerves and comes at the right time. Contemporary Amperex Technology (CATL), the largest maker of electric-vehicle batteries, is expected to raise as much as HK$41 billion following its launch on Monday, likely making it Hong Kong's largest IPO since Kuaishou Technology raised US$6.2 billion in January 2021. This will be a busy month, as Shanghai-listed Jiangsu Hengrui Pharmaceuticals aims to raise as much as HK$9.89 billion while Mirxes Holding from Singapore is seeking HK$1.09 billion under a rule that allows pre-profit start-up biotechnology firms to list. Another IPO aspirant is IFBH Limited, a Thai company incorporated in Singapore that is also the world's second-largest bottler of coconut water. After a couple of disappointing years, the city's capital markets began staging a rebound late last year. The benchmark Hang Seng Index has risen to a two-month high with positive earnings from such bellwether firms as Alibaba, the e-commerce giant that is also the parent company of this newspaper. As China's EV battery champion, the IPO by CATL outside the mainland is bound to attract interests from international investors. A global leader in batteries, it has been expanding overseas. Its US$7.8 billion plant in the eastern city of Debrecen in Hungary is expected to start production later this year; likewise an EV production facility by BYD, the world's biggest maker of electric vehicles. Hong Kong's IPO market this year is expected to see significant growth, with estimates suggesting it could rank among the top three global IPO venues, raising about HK$130 billion from between 70 and 80 offerings. Relatively low interest rates, strong regulatory support, and positive market sentiments have all contributed. For once, don't sell in May and don't go away.
