HK Stock Market Move | GENSCRIPT BIO (01548) rose more than 8% in early trading, plans to spin off its subsidiary, Hongbo Bio, for a listing in Hong Kong, possibly to alleviate redemption pressure.

GENSCRIPT BIO (01548) rose over 8% in morning trading. As of the time of this report, it is up 7.35%, priced at HKD 33.28, with a turnover of HKD 561 million. In recent news, GENSCRIPT BIO announced plans to spin off its subsidiary Probio Technology Limited (Pangbo Bio) for independent listing on the main board of the Hong Kong Stock Exchange. The announcement indicated that if the spin-off is successfully completed, Genscript will continue to hold a controlling stake in Pangbo Bio, and its operating and financial performance will continue to be consolidated into Genscript's financial statements. Public information shows that in July 2022, Pangbo Bio received an investment of USD 37.254 million from Zhenjiang High-tech. Both parties signed a performance agreement requiring Pangbo Bio to redeem all preferred shares if it fails to complete its initial public offering (IPO) by 2027. Analysts point out that if Pangbo Bio can complete its listing before 2027, some preferred shares are expected to convert into ordinary shares, aligning the capital structure and easing redemption pressure.