The Prenetics Ltd. logo is shown in the company’s laboratory in Hong Kong on July 31, 2020.
Roy Liu | Bloomberg | Getty Images
Hong Kong biotech company Prenetics will be made public through a merger with Artisan Acquisition (a special purpose acquisition company, or SPAC), in an agreement that will value the combined entity at $ 1.7 billion, they announced Thursday companies.
Confirming CNBC’s previous report, the two companies said the transaction is expected to close in the fourth quarter.
This will make Prenetics the first Hong Kong unicorn, or $ 1 billion start-up, to become a listed company.
The combined company will be listed on the Nasdaq with a new PRE symbol before its completion.
The merger is expected to provide up to $ 459 million in cash, which will be used for strategic acquisitions, geographic expansion and research and development.
A lab technician in protective suit processes RT-PCR Covid-19 tests in the laboratory of Prenetics Ltd. in Hong Kong on Friday, July 31, 2020.
Roy Liu | Bloomberg | Getty Images
The acquisition of artisans is supported by Adrian Cheng, CEO and executive vice president of New World Development, listed in Hong Kong. Prenetics appears to be turning to Cheng’s business portfolio, which covers retail, hospitality, healthcare and property.
Prenetics, headquartered in Hong Kong, is a genetic diagnosis and testing company operating in ten countries. To date, the company has conducted more than 5 million tests of Covid-19 for customers, including the Hong Kong government and London Heathrow Airport.
It has names such as Chinese internet company Alibaba and insurers Ping An and Prudential as strategic investors.
The company has grown significantly since its founding in 2014. Revenue for 2021 is projected to triple year-on-year to $ 205 million and reach $ 600 million by 2025.