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Chinese Cancer Screening Firm Soars 190% in Hong Kong IPO Debut
Julia Fioretti
18 February 2021, 09:24 GMT+8
Chinese cancer screening biotech firm New Horizon Health Ltd. almost tripled on its Hong Kong debut on Thursday, the latest initial public offering to pop on its first trading day after attracting billions of dollars of orders from retail investors.
New Horizon Health opened at HK$76, up from the offer price of HK$26.66, which was already at the upper end of a marketed range. Its shares rose to as high as HK$80 before trading at HK$76.05 as of 10:34 a.m. The biotech company raised $263 million in the IPO.
Thursday’s pop shows that the IPO frenzy gripping Hong Kong is not abating, coming two weeks after short-video company Kuaishou Technology leaped161% in its debut, the second-best ever for an IPO over $1 billion in the world.
If New Horizon Health ends it first day of trading with a gain bigger than Kuaishou’s it will be the best debut among Hong Kong IPOs raising more than HK$2 billion since Alibaba.com Ltd. in 2007, data compiled by Bloomberg show.
Over 1 million Hong Kong investors put in orders worth some HK$844 billion ($109 billion) for Qiming Venture Partners-backed New Horizon Health’s IPO. That represents a subscription rate of 4,133 times, the second-highest on record after Most Kwai Chung’s 2018 IPO, according to data compiled by Bloomberg.
First-time share sales have had their best start to the year on record in Asia, helped by Kuaishou’s mammoth offering and fueled by markets awash with liquidity, a stock rally, as well as hordes of retail investors bidding for shares. The dizzying first-day pops as well as the flurry of IPOs by blank-cheque companies in the U.S. have led some to warn of overheated markets.
— With assistance by Kevin Kingsbury, and Jeanny Yu
(Updates with share price in second paragraph, size and scope of rise in fourth paragraph)
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