China Cancer Drugmaker Surges 51% in Hong Kong Trading Debut

Hutchmed (China) Ltd., a cancer drug developer backed by billionaire Li Ka-shing, jumped in its first day of trade in Hong Kong about two years after it delayed a previous attempt to list in the city.

Shares of the biopharmaceutical company that already trades in the U.S. and the U.K. jumped as much as 51% from their offer price of HK$40.10. Hutchmed raised $537 million in the offering. It had initially planned a listing in Hong Kong in 2019, but the plan was shelved amid market uncertainties at the time.

Hutchmed’s debut comes after a stellar first half of the year for first-time share sales in the Asian financial hub, with a record $28 billion raised, data compiled by Bloomberg show.

Prior to Wednesday, almost 59% of the 44 companies that started trading in Hong Kong this year ended their first session higher than the listing price, with eight of them popping more than 50% on their debuts, data compiled by Bloomberg show.

Shares of property management firm Yuexiu Services Group Ltd. ended their first day of trading on Monday flat from their IPO price of HK$4.88. That contrasts with a 259% jump for Morimatsu International Holdings, a Chinese pressure equipment manufacturer which debuted the same day. Earlier this month, China Youran Dairy Group slumped 12% after its $643 million IPO.

Chinese bubble tea chain Nayuki Holdings Ltd. fell as much as 13% on its Hong Kong debut on Wednesday.

Hutchmed’s stock in New York is up 3.8% this year, while the London-listed shares have risen 3.3%.

©2021 Bloomberg L.P.

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