Ascentage Pharma Announces Closing of U.S. Initial Public Offering

Rhea-AI Summary

Ascentage Pharma (Nasdaq: AAPG) has successfully completed its U.S. initial public offering, raising approximately $126.4 million in gross proceeds. The company offered 7,325,000 American depositary shares (ADSs) at $17.25 per ADS, with each ADS representing four ordinary shares. Trading of the ADSs commenced on the Nasdaq Global Market on January 24, 2025.

The company has granted underwriters a 30-day option to purchase up to an additional 1,098,750 ADSs at the initial offering price, less underwriting discounts and commissions. J.P. Morgan and Citigroup served as joint book-running managers for the offering.

Positive

• Successful IPO raising $126.4 million in gross proceeds
• Listing on major exchange (Nasdaq Global Market)
• Strong underwriter support from J.P. Morgan and Citigroup

Negative

• Potential dilution from additional 1,098,750 ADSs if underwriters exercise their option

Insights

Investment Banking & IPO Analyst

The successful completion of Ascentage Pharma's U.S. IPO marks a strategic milestone in the company's global expansion journey. The $126.4 million raise demonstrates strong institutional investor confidence, particularly notable given the historically volatile biotech funding environment. The dual-listing structure (NASDAQ: AAPG, HKEX: 6855) positions the company uniquely to access both Western and Asian capital markets, enhancing its funding flexibility and global visibility.

The pricing at $17.25 per ADS and the substantial offering size of 7.325 million shares reflects robust demand, while the 30-day overallotment option of 1.098 million additional ADSs provides a mechanism for price stabilization and potential additional capital. The selection of J.P. Morgan and Citigroup as joint book-runners - both with strong track records in biotech IPOs and deep networks in both U.S. and Asian markets - suggests a well-orchestrated offering designed to ensure broad institutional participation.

This dual-listing approach offers several strategic advantages:

• Enhanced liquidity across different time zones
• Broader investor base spanning two major financial markets
• Increased visibility to global pharmaceutical partners
• Greater flexibility in future capital raising

The successful execution of this IPO, particularly in the current market environment, positions Ascentage Pharma with a stronger balance sheet to advance its pipeline development and potential commercialization efforts.

ROCKVILLE, Md. and SUZHOU, China, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Ascentage Pharma (Nasdaq: AAPG) (HKEX: 6855) announced today the closing of its U.S. initial public offering of 7,325,000 American depositary shares (“ADSs”), at a public offering price of $17.25 per ADS, before underwriting discounts and commissions. Each ADS represents four ordinary shares of Ascentage Pharma. The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Ascentage Pharma, was approximately $126.4 million. In addition, Ascentage Pharma has granted the underwriters a 30-day option to purchase up to an additional 1,098,750 ADSs at the initial public offering price, less underwriting discounts and commissions. The ADSs began trading on the Nasdaq Global Market on January 24, 2025.

J.P. Morgan and Citigroup acted as joint book-running managers for the offering.

About Ascentage Pharma

Ascentage Pharma is a global, integrated biopharmaceutical company engaged in discovering, developing and commercializing therapies to address global unmet medical needs primarily in hematological malignancies. Ascentage Pharma has been listed on the Main Board of the Stock Exchange of Hong Kong Limited with the stock code 6855.HK since October 2019 and has also been listed on the Nasdaq Global Market under the ticker symbol “AAPG” since January 2025.

Contacts

Investor Relations

Hogan Wan, Head of IR and Strategy
Ascentage Pharma
Hogan.Wan@ascentage.com
+86 512 85557777

Stephanie Carrington
ICR Healthcare
Stephanie.Carrington@icrhealthcare.com
(646) 277-1282 

Media Relations

Sean Leous
ICR Healthcare
Sean.Leous@icrhealthcare.com
(646) 866-4012

FAQ

How much did Ascentage Pharma (AAPG) raise in its US IPO?

Ascentage Pharma raised approximately $126.4 million in gross proceeds from its U.S. IPO before deducting underwriting discounts and commissions.

What was the IPO price for Ascentage Pharma (AAPG) ADSs?

Ascentage Pharma's ADSs were priced at $17.25 per ADS in the initial public offering.

How many ADSs did Ascentage Pharma (AAPG) offer in its US IPO?

Ascentage Pharma offered 7,325,000 American depositary shares (ADSs) in its U.S. IPO.

When did Ascentage Pharma (AAPG) begin trading on Nasdaq?

Ascentage Pharma began trading on the Nasdaq Global Market on January 24, 2025.

What is the conversion ratio of Ascentage Pharma (AAPG) ADSs to ordinary shares?

Each Ascentage Pharma ADS represents four ordinary shares of the company.