Chinese Clear Brace Maker More Than Doubles on Hong Kong Debut

Chinese maker of clear orthodontic braces Angelalign Technology Inc. surged 132% on its Hong Kong debut on Wednesday after an initial public offering that was one of this year’s most popular in the city.

Angelalign shares ended their first day of trading at HK$401, compared with their offering price of HK$173, which was already at the top of a marketed range. Its debut is the best in Hong Kong in months for IPOs raising over $100 million, since New Horizon Health Ltd.’s 215% rise in February, data compiled by Bloomberg show.

Angelalign’s IPO attracted high levels of demand from both retail and institutional investors, signaling that appetite for share sales is ticking up again after a spate of mediocre debuts.

Mom-and-pop buyers put in orders for 2,079 times the shares initially made available to them -- the second-highest subscription rate for an IPO in Hong Kong this year, data compiled by Bloomberg show. Angelalign was also the Asian financial hub’s most popular first share sale among funds this year, drawing orders for 114.7 times the shares on offer.

Hong Kong’s IPO market has had a strong start to the year, as rallying stocks, ample liquidity and ultra-low interest rates fueled demand for new share offerings. That frenzy has since abated as investors have become more selective amid concerns about accelerating inflation and more volatile markets.

Just eight companies have begun trading in the city this quarter, on track for the fewest since the second quarter of 2009, data compiled by Bloomberg show. However activity is starting to tick up again, with at least six companies currently gauging investor demand for their listings.

©2021 Bloomberg L.P.

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