Korea's Access Bio goes public, STIC PE expects 5x return
STIC Private Equity has made a partial exit from Korean biotech firm Access Bio after the company went public on the KOSDAQ exchange. The PE firm sold shares in two tranches – one just before the IPO and one during it – and has generated a money multiple of 2.3x. It now expects an overall return of around 5x on an investment of KRW12.5 billion ($11 million) made in 2011.
Access Bio - the first US-based biotech firm run by Korean scientists to list on KOSDAQ - priced its offering at KRW4,500 per share and the stock closed at KRW10,350 on its first day of trading on May 30, reaching the 15% price volatility limit.
STIC Private Equity Fund II originally held 28.9% of the company and has now reduced its stake to 15%, which will be divested through block trades or sell-downs.
Access Bio's stock rose again on May 31, reaching KRW11,900 for another 15% gain. Based on the current market capitalization, STIC PE's remaining stake is worth about KRW45 billion.
Established in 2011, Access Bio develops in vitro diagnostic testing kits for various infectious diseases, including malaria and HIV. Its products are used by the US armed forces as well as by non-governmental organizations such as the World Health Organization, Doctors Without Borders and the UN Children's Fund (UNICEF).
STIC PE became aware of the company in 2008 through the Samsung Advanced Institute of Technology, just after it launched a malaria diagnostics kit and was looking to penetrate global markets. The private equity firm became Access Bio's first institutional investor in 2011, putting in capital to support expansion plans. It also helped get products into China through cooperation with Triplex, a Chinese biotech company in the STIC portfolio.
Triplex is targeting a Hong Kong IPO this year.
More on Exits
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.