Initial public offering (IPO) plans keep rolling in for Hong Kong’s revitalised capital market, with China’s largest pharmaceutical company launching another billion-dollar deal on Thursday.
Shanghai-listed Jiangsu Hengrui Pharmaceuticals aims to raise as much as HK$9.89 billion (US$1.27 billion) from a share sale in the city, while Singapore-based Mirxes Holding is seeking HK$1.09 billion under a rule that allows start-up biotechnology firms to list, according to separate filings with the Hong Kong stock exchange on Thursday.
Hong Kong’s capital markets started to rebound in late 2024 after three years in the doldrums. The total market capitalisation of stocks traded in Hong Kong stood at US$38.8 trillion at the end of April, up 21 per cent from a year earlier, according to exchange data. The benchmark Hang Seng Index rose to a nearly two-month high on Wednesday after some firms reported positive earnings amid a temporary truce in the US-China trade war.
Hengrui has started taking investor orders for 224.5 million shares priced between HK$41.45 and HK$44.05. About 5.5 per cent of the shares are reserved for local retail investors, while the rest are for a global audience.
The top price was 23 per cent lower than the stock’s closing of 52.90 yuan in Shanghai on Wednesday, in line with other major Hong Kong IPOs. The stock rose as much as 1.1 per cent in the morning trading session on Thursday. Investors are usually offered stock at a discount in offshore listings to spur interest.
Hengrui’s earnings surged 47.3 per cent in 2024 from a year earlier to 6.34 billion yuan (US$879 million), while revenue rose 22.6 per cent.
