• Zai Lab picks Citigroup, JPMorgan to arrange U.S. offering
  • Drug developer plans IPO that could raise about $150 million

Zai Lab Ltd., a Chinese drug developer working on cancer treatments, has picked banks to arrange a planned U.S. initial public offering that could raise about $150 million, people with knowledge of the matter said.

The Shanghai-based biopharmaceutical company, started by former Pfizer Inc. senior scientist Samantha Du, is working with Citigroup Inc. and JPMorgan Chase & Co., according to the people. It is targeting a market capitalization of about $1 billion, one of the people said, asking not to be identified because the information is private. Zai Lab plans to start taking investor orders as soon as September, the people said.

China’s pharmaceutical market has been given a boost by entrepreneurs like Du, known as “hai gui” or “sea turtles,” who returned to the country after stints working or studying overseas. Since starting Zai Lab in 2014, Du has attracted investors including Kleiner Perkins Caufield & Byers, Sequoia Capital China and Qiming Ventures.

Details of the Zai Lab offering haven’t been finalized, and it’s…