Singapore biotech startup Mirxes in talks for US$1.2b SPAC listing in US

Singapore

SINGAPORE biotech company Mirxes is in early talks to go public via a blank-cheque company affiliated with veteran private equity healthcare investor Fu Wei, according to people familiar with the matter.

A deal between Mirxes and Summit Healthcare Acquisition is set to value the combined entity at about US$1.2 billion, one of the people said. The special purpose acquisition company (SPAC) deal would feature a so-called private investment in public equity (PIPE), which involves a private placement of the company's common stock to its investors. A transaction could be reached by early next year, although talks might still fall apart.

Mirxes had originally been eyeing a public listing in the United States or Hong Kong, The Business Times reported in July.

Mirxes might still opt for a traditional initial public offering in Hong Kong now that enthusiasm in the US SPAC market has waned, one of the people said. The startup, which counts China as one of its key markets, could then benefit from the gathering momentum in healthcare stocks on the Hong Kong Stock Exchange.

If the merger is successful, Mirxes, which specialises in cancer diagnostics, will be the latest from Singapore to join the likes of Grab, Carousell and PropertyGuru planning to go public through a SPAC in the US.

Mirxes' investors include CR-CP Life Science Fund, a 50-50 joint venture between China Resources Group and Thailand's Charoen Pokphand Group, as well as EDBI, the investment arm of Singapore's Economic Development Board.

Founded in 2014 as a spin-off from Singapore's science and tech research arm A*Star, Mirxes has developed a PCR (polymerase chain reaction) test kit that can detect cancer cells in the blood even at early stages when there are no symptoms.

Headquartered in Singapore, the startup also has operations in China, Japan and the US.

The latest development comes on the heels of Mirxes' recent US$77 million fundraise in July, which brought its valuation to over US$500 million, triple that of the valuation from its previous round.

Meanwhile, the company on Tuesday said it raised an additional US$10 million in strategic investments from several healthcare-focused firms, bringing the total amount raised to date to US$130 million.

Liu Da, the managing director of CR-CP Life Science Fund, has also joined Mirxes' board of directors. Mr Liu has experience in helping several life sciences companies - including Legend Biotech and New Horizon Health - to go public in Hong Kong and the US.

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