China's genomics company BGI makes stock market debut

BEIJING — China's genomics giant BGI made its initial public offering (IPO) Friday on the Shenzhen Stock Exchange, with shares surging by the upper limit shortly after its debut.

With an initial offering price of 13.64 yuan ($2), the company's share jumped more than 32 percent shortly after the market opening, triggering a temporary suspension on trading, before the share prices jumped again to reach the upper limit of 19.64 yuan after trading resumed.

According to market rules, share prices of stocks on their first day of trading on the Shenzhen Stock Exchange should not exceed 144 percent of the initial offering price.

Founded in 1999, the gene sequencing firm offers a wide portfolio of genetic testing products across major diseases, enabling medical providers and patients worldwide to realize the promise of genomics-based diagnostics and personalized healthcare.

BGI's services and solutions are available in more than 60 countries and regions around the world, according to the company's website.

In 2016, the company made revenues of 1.71 billion yuan (about $252 million) and net profits of 332.69 million yuan, according to filings on the exchange.

According to TF Securities, China's gene sequencing market has seen rapid growth and the market size has reached around 5.4 billion yuan in 2016, and will likely exceed 10 billion yuan by 2020.

The compound annual growth rate of the industry will be around 20 to 25 percent, among the fastest rates around the world, it said.