ADVERTISEMENT

Chinese Drugmaker Asymchem Slips in Hong Kong Trading Debut

Chinese Drugmaker Asymchem Slips in Hong Kong Trading Debut

Chinese contract drug manufacturer Asymchem Laboratories Tianjin Co. dropped in its first day of trading in Hong Kong, after completing the Asian financial hub’s biggest initial public offering in more than two months. 

The shares closed 4.6% lower than the issue price at HK$370 on Friday. They were sold at HK$388 apiece in an IPO that raised about HK$7.15 billion ($917 million). The H-shares had been marketed at between HK$350 and HK$410 and were ultimately priced at a discount of 34% to Asymchem’s Shenzhen-listed stock.

Chinese Drugmaker Asymchem Slips in Hong Kong Trading Debut

Asymchem is the largest IPO in Hong Kong since Dongguan Rural Commercial Bank Co.’s $1.2 billion deal in September. Hong Kong’s exchange has hosted few large offerings in recent months as Beijing’s clampdowns on various industries soured sentiment in both the primary and secondary markets.

With Asymchem, 13 of 18 Hong Kong IPOs since August that’ve raised over $100 million each have ended their first session below the listing price, according to data compiled by Bloomberg. 

Asymchem, a Tianjin-based contract development and manufacturing organization (CDMO) for the drug industry, plans to use proceeds to add capacity and capabilities as well as increase market share. Goldman Sachs Group Inc. and Citic Securities Co. were joint sponsors for the share sale.

Two other smaller debuts in Hong Kong on Friday had mixed performance. Gushengtang Holdings Ltd., a traditional Chinese medicine healthcare service provider, ended flat after jumping as much as 18% following a $104 million offering. CANbridge Pharmaceuticals Inc., a biopharmaceutical company, dropped 27% following an $88 million IPO. 

READ: From Hong Kong to India, It’s a Poor Day for Asian IPOs: Chart

©2021 Bloomberg L.P.