Using the UK GlobalData database, Japan’s Nikkei Biotech magazine examined trends in biotech company IPOs over the past 5 years with the following results:
– the number of IPOs of biotech companies worldwide decreased from 182 in 2021 to 56 in 2022,
– especially in North America, the number of IPOs decreased by one-fifth from 105 to 22, and the amount of funds raised decreased from about US$29 million (2021) to about US$5 million (2022)
– in contrast, IPOs of biotech companies in the Chinese market decreased by only about 34% in 2022. Their number decreased from 31 (2021) to 20 (2022), and their value decreased by 54% from about $6.5 billion (2021) to $3 billion (2022),
– according to PricewaterhouseCoopers (PwC), China’s IPO raising for all industries was $68 billion in 2022, three times more than in the US ($24 billion). The backdrop to this is the Chinese government’s relaxation of IPO requirements, which appears to have led to more Chinese companies going public in mainland China and avoiding weak foreign markets,
– the top 20 IPO proceeds were dominated by 11 Chinese companies, all of which are listed on the Chinese market.