Biotech start-up Mirxes weighs Singapore IPO, aims to double global headcount by 2026
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Mirxes said that it plans to double its headcount within the next three years, from 400 now to 800.
PHOTO: THE BUSINESS TIMES
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SINGAPORE – Singapore-based cancer diagnostics start-up Mirxes is still weighing a potential initial public offering (IPO) in Singapore after filing for an IPO on Hong Kong’s stock exchange last week.
The company also said that it plans to double its headcount within the next three years, from 400 now to 800, with the bulk of its workforce stationed in China and Singapore. The Republic will also serve as its global headquarters and base for the Asean region.
When asked if Mirxes still intends to file for an IPO on the Singapore Exchange (SGX) after its HKEX (Hong Kong Exchanges and Clearing) filing, Mirxes co-founder and chief executive Zhou Lihan said that the company is considering the possibility of a dual listing on SGX.
“Both Hong Kong and Singapore are prominent financial hubs in Asia, offering supportive business environments and access to investors in the region,” he added.
In April, a report by The Business Times stated that Mirxes made its first submission of documents to SGX, citing people familiar with the matter.
Dr Zhou told The Straits Times on Tuesday that his company “started official conversations” with SGX in the last quarter of 2022, but did not reveal if and when it had made its formal application to SGX.
Last week, it filed its listing application under Chapter 18A of HKEX’s listing rules, potentially becoming the first company outside of Hong Kong and China to be granted an IPO on the Hong Kong stock exchange.
The company also announced that it raised US$50 million (S$67 million) in a Series D funding round which saw participation from new investors including Chinese state-owned fund Beijing Fupu and Japanese conglomerate Mitsui. Singapore’s Agency for Science, Technology and Research (A*Star), NHH Venture Fund and Singapore’s state-linked EDBI were returning investors.
Dr Zhou said that Mirxes has been eyeing an IPO in Hong Kong for some time, due to its proximity to North Asia, where stomach cancer is prevalent.
He also noted how Hong Kong sets a precedent, as there are 60 biotech companies listed on the Hong Kong mainboard, including one of Mirxes’ investors and fellow cancer diagnostics company New Horizon Health, which raised US$263 million in its February 2021 IPO.
“Hong Kong gives us access to a sophisticated pool of investors and also the Chinese market,” he added.
Eight of the top 10 pharmaceutical companies in the world have operations in Singapore, while there are 41 healthcare companies listed on the SGX, of which roughly 20 are a mixture of biotech, pharmaceutical and medical equipment/supply companies.
Dr Zhou said that Singapore is good for innovation and product pilots, but the market is too small compared with North Asian countries such China, Japan and South Korea.
“For any tech company to survive and scale, regional and global markets are needed,” he added.
However, Dr Zhou also pointed out that Singapore has the potential to attract biotech companies, just like how Hong Kong is doing so with the Chapter 18A listing rule.
The initiative, started in 2018, allows pre-revenue biotech companies to list in Hong Kong.
“Singapore is undoubtedly a renowned financial hub with its own distinct advantages, and we recognise the potential benefits it offers for companies seeking to list on its stock exchange,” he said.
“As we went deeper into the Covid-19 pandemic, we became more confident of the longer-term value of Asean as well as SGX,” he added.
Last week’s pre-listing funding round is believed to value Mirxes at approximately US$600 million. Dr Zhou said that he and his co-founders intend to retain their stakes in the firm after the potential IPO.
“There’s no plan to reduce any major stake in the company,” he said.
Founded in 2014 as a spin-off from A*Star, Mirxes has facilities and offices in six countries – Singapore, China (including Hong Kong), Japan, the United States, Malaysia and the Philippines.
The company focuses on microRNA-based cancer detection. Its flagship product, GastroClear, is the world’s first molecular blood test approved for early detection of gastric cancer in high-risk populations.
It has also introduced a lung cancer detection kit and is leading the world’s first large-scale clinical research project that will lead to the development of a multi-cancer early detection test that can screen for up to nine different cancers.
In 2020, Mirxes developed Singapore’s first Covid-19 reverse transcription polymerase chain reaction test kit, the Fortitude Kit,
