Burning Rock Biotech, which provides DNA sequencing-based cancer therapy selection tests in China, announced terms for its IPO on Friday. The company plans to raise an additional $25 million in a concurrent private placement to Lake Bleu Capital.
The Guangzhou, China-based company plans to raise $196 million by offering 13.5 million ADSs at a price range of $13.50 to $15.50. Insiders intend to purchase $79 million worth of ADSs in the offering. At the midpoint of the proposed range, Burning Rock Biotech would command a market value of $1.5 billion.
The company currently offers 13 next-generation sequencing-based cancer therapy selection tests for a broad range of cancer types. Its core products include OncoScreen Plus, which tests for 520 genes associated with most solid tumors, and LungPlasma, which tests for 168 genes associated with lung cancer.
Burning Rock Biotech was founded in 2014 and booked $48 million in revenue for the 12 months ended March 31, 2020. It plans to list on the Nasdaq under the symbol BNR. Morgan Stanley, BofA Securities, and Cowen are the joint bookrunners on the deal.
