Prenetics becomes first HK unicorn on Nasdaq after SPAC deal

Prenetics has become the first Hong Kong-based unicorn to list on Nasdaq following a merger with blank-check company Artisan Acquisition Corp.

Prenetics CEO Danny Yeung at Hong Kong’s 2015 Rise conference / Photo credit: Rise

The healthtech firm began trading on May 18 under ticker symbols “PRE” for class A ordinary shares and “PRENW” for warrants.

The merger values Prenetics at US$1.3 billion. It will raise upward of US$260 million in proceeds from the business combination in cash and trade receivables.

The Hong Kong-based genetic and diagnostic testing company will use the proceeds for strategic acquisitions, R&D, product rollout, and geographic expansion into Europe, the Middle East, Africa, and Southeast Asia. It is in M&A discussions with multiple European and Southeast Asian companies in the telehealth and personalized care verticals.

Danny Yeung, CEO and co-founder of Prenetics, will continue to lead the combined company. Meanwhile, Artisan Acquisition founder Adrian Cheng will be a strategic shareholder in Prenetics, and CEO Ben Cheng will become a board member of the healthtech firm.

The company had boasted strong financials ahead of the merger, clocking in revenues of US$92 million in the first quarter of 2022, a year-on-year increase of over 60%.

As of March 31, Prenetics had cash and trade receivables of US$93.4 million, consisting of US$34.2 million of the former and US$59.2 million of the latter.

Its primary products are Covid-19 laboratory and rapid at-home tests, having processed and delivered more than 22 million globally to date. It has also sold more than 140,000 CircleDNA kits, a genetic testing tool.

See also: The key actors in Southeast Asia’s soaring healthtech space