- Hengrui opens trading at HK$57, up 29% from offer price.
- IPO was Hong Kong’s largest pharmaceutical in 5 years.
- Proceeds support clinical trials, research expansion.
Hengrui Pharmaceuticals, China’s leading drugmaker by market value, began trading in Hong Kong following the completion of its IPO. The IPO raised HK$9.89 billion, priced at the top end due to strong demand.
The listing was led by Deputy Chairman Dai Hongbin, who emphasized its importance in Hengrui’s global expansion. The proceeds will fund clinical trials, capacity expansion, and research.
Market Impact
Hengrui’s shares initially surged, indicating high investor interest. They opened at HK$57, gaining 29% from the offer price of HK$44.05, and peaked with a 37% increase before closing with a 25% gain.
The IPO reflects investor confidence, with the retail tranche oversubscribed 450 times and institutional interest equally strong. It is a milestone in Hong Kong’s IPO performance.
Valuation Implications
Analysts note the Hong Kong listing could alter valuation norms between mainland and Hong Kong markets. It might mitigate historical discounts on Chinese companies’ Hong Kong stocks.
Historical trends show Chinese firms often trade at a discount in Hong Kong. Hengrui’s strong debut may signal positive changes for other dual-listed companies.
“We will take this listing as a new starting point, remain true to our original aspiration, forge ahead, strive for high-quality development, and global layout,” said Dai Hongbin, Deputy Chairman, Jiangsu Hengrui Pharmaceuticals. Source
