In this photo taken on June 5, 2020, an employee handles a sample at a laboratory of biotech start-up Prenetics/Circle DNA in Hong Kong.   (ANTHONY WAALCE / AFP)

Seven-year-old Hong Kong genomic and diagnostic testing company Prenetics Group is lining up to go public on the Nasdaq stock market in a merger with New World Development Executive Vice-Chairman and Chief Executive Officer Adrian Cheng Chi-kong’s US-listed special purpose acquisitions vehicle, Artisan Acquisition Corp.

Prenetics said in a statement Thursday that “a definitive merger agreement’’ has been signed with the Cayman Islands incorporated Artisan.

Artisan founder and New World Development Executive Vice-Chairman and Chief Executive Officer Adrian Cheng said in a statement on Thursday he is pleased to have found “a high impact and high growth global company”

The transaction values Prenetics at an enterprise value of US$1.25 billion with a combined equity value of about US$1.7 billion, making Prenetics the first unicorn from Hong Kong to be publicly listed in any market, the company said. A unicorn is a start-up valued at US$1 billion or more.

Prenetics CEO and co-founder Danny Yeung said in a webcast for investors on Thursday the three pillars of Prenetics are prevention (genetic testing, and early colorectal screening), diagnostics, (including COVID-19 testing and medical genetic testing) and personalized care (personalized nutrition, hair and sexual health products).

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He said Prenetics is on its way to generating more than US$205 million in revenue in 2021.

Yeung said the company has done more than 5 million COVID-19 PCR lab tests. Prenetics is the only testing provider inside the Hong Kong International Airport terminal, Yeung said, adding that more than 50 percent of its revenue was related to travel.

After the IPO, Prenetics will have more than US$400m for acquisitions, he said.

Prenetics said the total cash proceeds are expected to be up to US$459 million. This includes “a fully committed private investment in public equity and forward purchase agreements of US$120 million from Aspex, PAG, Lippo, Dragonstone, and Xen Capital, and up to US$339 million of cash currently held in the trust account of Artisan Acquisition Corp”.

Adrian Cheng, chief executive officer of New World Development Co, listens during a Bloomberg Television interview at the State Theater in Hong Kong, China, on April 7, 2021. (PHOTO / BLOOMBERG)

Artisan founder Adrian Cheng said in the statement on Thursday he is pleased to have found “a high impact and high growth global company”.

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In an investor presentation, Artisan CEO Ben Cheng, said Prenetics is a “clear fit for Artisan” and described the company as a “disruptor”.

The transaction is expected to wrap up in the fourth quarter of this year, or the first quarter of 2022.

SPACs are shell companies that raise capital in an initial public offering with the sole aim of using the proceeds to acquire one or more companies. SPACs are nascent companies without specific business plans, or purpose, or have indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person.

In the second quarter of this year, there were just 59 SPAC IPOs, which raised US$12 billion. There were 39 SPAC acquisitions completed in the quarter. The total acquisition value was US$81.9 billion.

Hong Kong’s financial regulatory authorities are exploring the feasibility of introducing the listing of SPACs, while this month the Singapore Exchange became the first exchange in Asia to allow such listings.

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