Korean biotech Xcell Therapeutics eyes June IPO

South Korean biotech Xcell Therapeutics Inc., a developer of chemically defined media for in vitro cell culture, is aiming for a junior bourse Kosdaq listing in June.

The company is set to raise at least 10 billion won ($7.4 million) by selling 1.62 million shares via the initial public offering and use the proceeds for its facilities, operations and expansion in local and overseas markets, according to its regulatory filing earlier this week.

The biotech is estimated to have a market cap of more than 67.1 billion won. It will hold bookbuilding from June 3 to 10 and open subscriptions for retail investors between June 12 and 13.

Xcell, which dropped its IPO plan in 2021, has won approval from the Korea Exchange’s preliminary review for listing, thanks to its recent performance, including overseeing a state-run project of artificial blood manufacturing and signing a contract for joint research and development and supply of chemically defined medium with local drugmakers.

The biotech is expected to reach a commercialization milestone based on the state-backed project and joint R&D with biopharmaceutical firms, industry insiders said.
 
Established in 2015, Xcell specializes in developing chemically defined media suitable for the culture of human or animal cells in which all of the chemical components are known.

Chemically defined media are garnering attention thanks to various advantages such as the elimination of risk of contaminants including viruses from animal-derived products and batch-to-batch variation of bovine serum albumin, which can create inconsistency in growth-promoting properties.

Xcell has built XPorT, a platform for chemically defined medium, and has developed media for dermal papilla cells, keratinocytes and exosomes through the platform.

The company’s largest shareholder is founder and Chief Executive Lee Uiil, who holds an 18.8% stake as of March 31.

Local investors Korea Investment Partners, Ignite Innovators and JD Finance respectively own 6.6%, 6.5% and 6.0% of Xcell, and minority shareholders own a combined 27.0% stake as of the end of 2023.

Write to Seok-Cheol Choi at dolsoi@hankyung.com

Jihyun Kim edited this article.