Mirxes’ HK IPO: Pioneering miRNA Diagnostics with Strong Investor Backing

1. IPO Details

Purpose of IPO: Mirxes aims to raise approximately HKD 1.086 billion (USD 139 million) through its IPO. The proceeds are intended to support the commercialization of its gastric cancer test, further assay development, and expansion into key markets.

Oversubscription: The Hong Kong public offering was oversubscribed by approximately 50 times, indicating strong investor interest.

2. IPO Placement and Outstanding Shares

• Total Shares Offered: 46.62 million

• Offer Price: HKD 23.30 per share

• Market Capitalization at Listing: Approximately HKD 3.5 billion

• Expected Listing Date: May 23, 2025

Given the significant oversubscription and strong demand, the IPO is anticipated to perform well on its first day of trading.

3. Institutional and Anchor Investors

Cornerstone Investors:

• Beijing Xunrui Enterprise Management Partnership: Subscribed for USD 50 million worth of shares.

• Evergreen Gate (a subsidiary of Fosun International): Subscribed for USD 7.92 million worth of shares.

These cornerstone investors collectively account for approximately 41.37% of the global offering, underscoring confidence in Mirxes’ business model and growth prospects

4. Investment Bankers, Underwriters, and Sponsors

• Joint Sponsors: China International Capital Corporation Hong Kong Securities Limited (CICC) and CCB International Capital Limited.

• Underwriters: CICC, CCB International, CMBC Securities, CMB International, Soochow Securities International, Livermore Holdings, BOCOM International, Platinum Broking, Waton Securities International, Alpha Win Capital, Imperium International Securities, Kingkey Securities Group, and Yuen Meta (International) Securities

The involvement of reputable financial institutions suggests a well-supported IPO, which may positively influence its market performance.

5. Company Overview

Business Model and Industry: Mirxes is a Singapore-based biotechnology firm specializing in microRNA (miRNA) technology for early cancer detection. Its flagship product, GASTROClear™, is the world’s first approved blood-based miRNA test for gastric cancer screening.

Financial Health:

• Revenue:

  • 2022: USD 17.76 million

  • 2023: USD 24.19 million

  • 2024: USD 20.28 million

• Net Loss:

  • 2022: USD 56.20 million

  • 2023: USD 69.57 million

  • 2024: USD 92.21 million

While revenues have shown growth, the company remains unprofitable, primarily due to substantial investments in R&D and expansion activities.

Market Position: Mirxes holds a 66.3% market share in the miRNA-based liquid biopsy gastric cancer screening market in Southeast Asia, highlighting its leadership in this niche segment.

Management Team:

• Dr. Zhou Lihan: Co-founder, Executive Director, and CEO.

• Dr. Zou Ruiyang: Co-founder and Executive Director.

The leadership team possesses extensive experience in biotechnology and diagnostics, which is instrumental in driving the company’s innovation and growth.

 Market Trends and Timing

Sector Trends: The global cancer diagnostics market is experiencing rapid growth, driven by increasing demand for early detection and personalized medicine.

Regional Trends: In Asia, there’s a heightened focus on early cancer screening, with governments and healthcare providers investing in advanced diagnostic solutions.

Global Trends: The adoption of non-invasive diagnostic tests, like liquid biopsies, is gaining traction worldwide, offering opportunities for companies like Mirxes.

Economic Environment: Despite global economic uncertainties, the healthcare sector remains resilient, with diagnostics playing a crucial role in disease management.

IPO Timing: Mirxes’ IPO aligns with a period of renewed investor interest in biotech firms, potentially enhancing its reception in the market.

 Peer Comparison

Research and Expert Opinions

As of now, there are no publicly available analyst reports or price targets for Mirxes Holding Company Limited. Given its recent IPO, coverage may emerge as the company establishes its presence in the public market.

IPO Allotment Result

The allotment results for Mirxes’ IPO are scheduled to be announced on or before May 22, 2025. Investors can check the results on the company’s website or the Hong Kong Stock Exchange’s platform.

10. Investment Consideration

Pros:

• Strong market position in Southeast Asia’s miRNA-based diagnostics.

• Innovative product portfolio with regulatory approvals in multiple regions.

• Significant backing from cornerstone investors.

Cons:

• Consistent net losses over the past three years.

• High R&D and administrative expenses impacting profitability.

Estimated First-Day Trading Range: Given the oversubscription and market interest, the stock may trade between HKD 25.00 to HKD 28.00, representing a 7% to 20% increase over the IPO price.

Prospectus Download

Investors can download the full prospectus from the Hong Kong Stock Exchange’s website: Mirxes Prospectus.HKEX News+7HKEX News+7HKEX News+7

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