China’s medical diagnostic reagents and kits maker Triplex International Biosciences Co. is expected to go public in South Korea’s tech-heavy secondary Korea Securities Dealers Automated Quotations (Kosdaq) market next year to become the first foreign biomedical engineering company to be listed in Korea since Access Bio Inc., U.S-based firm founded by Koreans joined the Kosdaq market in May 2013.

According to investment bank industry sources on Tuesday, the Chinese healthcare company is likely to submit an application for preliminary review for its initial public offering (IPO) to the Korea Exchange late this year. Given the fact that it normally takes about 45 days for document review, the company is expected to go public within the first three months of next year.

Triplex International Biosciences previously mulled its IPO in the Hong Kong stock market, but decided to join the Kosdaq after pondering upon various market conditions. Shinhan Investment Corp. in Korea is the underwriter of the company’s IPO.

Headquartered in Xiamen, southern China, Triplex International Biosciences develops and supplies medical diagnostic reagents and instruments including cervical cancer testing kits. It was established in 2002 and registered around 10 billion won ($8.9 million) in net profit on about 60 billion won in sales last year. Market observers expect its market capitalization would surpass 500 billion won if the firm goes public next year.

Korea’s private equity fund Stic Investments Inc. currently owns a 7 percent stake in the Chinese biotech company after investing about 15 billion won in 2010.

Market observers said the Korean stock market is more attractive to foreign pharmaceutical and bioengineering firms as such companies are valued more in Korea than in other countries. The average price-earnings (P/E) ratio of biotechnology and biomedical engineering companies listed on the Korean bourses stands at 50 or higher, far exceeding that of the United States’ Nasdaq with about 40 P/E ratio and China’s Shanghai A-share index with about 15.

By Kim Hye-soon and Song Gwang-sup

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