Sichuan Neautus shares surge 119% in Hong Kong IPO debut
Sichuan Neautus Traditional Chinese Medicine shares soared in their Hong Kong debut after the company raised HK$262 million through an IPO. Strong retail investor demand, reflected in massive oversubscription, drove the stock sharply higher despit...
By Anupam Nagar, ETMarkets.com |
ETMarkets.com
Retail investors placed overwhelming bets on the Chinese medicine maker, fuelling a spectacular debut on the Hong Kong exchange.
Shares of Sichuan Neautus Traditional Chinese Medicine surged as much as 119.2% in its Hong Kong market debut on Wednesday after the Chinese traditional medicine manufacturer raised HK$262 million ($33.4 million) through an initial public offering (IPO).
The stock opened at HK$51.30, up 27.6% from its IPO price of HK$40.20, before climbing to an intraday high of HK$88.10. It was last trading at HK$83, representing a gain of 106.5% over its offer price, even as the benchmark Hang Seng Index declined 0.7%.
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Neautus sold 6.52 million shares at HK$40.20 apiece, the lower end of its indicative price range of HK$40.20 to HK$50.55. The offering witnessed particularly strong demand from retail investors, with the retail portion subscribed 2,190.99 times. The international offering was subscribed 1.25 times.
The company plans to use the IPO proceeds to expand and automate its production facilities, develop wellness products and strengthen its sales network in China, Vietnam and Malaysia. It also intends to allocate funds towards working capital requirements, Reuters reported.
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The strong debut highlights robust investor demand for the company's shares, particularly among Hong Kong retail investors, despite weakness in the broader market.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)
The stock opened at HK$51.30, up 27.6% from its IPO price of HK$40.20, before climbing to an intraday high of HK$88.10. It was last trading at HK$83, representing a gain of 106.5% over its offer price, even as the benchmark Hang Seng Index declined 0.7%.
Read more: Global Market Today: Asian stocks rise on CoreWeave results, bonds drop
Neautus sold 6.52 million shares at HK$40.20 apiece, the lower end of its indicative price range of HK$40.20 to HK$50.55. The offering witnessed particularly strong demand from retail investors, with the retail portion subscribed 2,190.99 times. The international offering was subscribed 1.25 times.
The company plans to use the IPO proceeds to expand and automate its production facilities, develop wellness products and strengthen its sales network in China, Vietnam and Malaysia. It also intends to allocate funds towards working capital requirements, Reuters reported.
Read more: US stocks: Five things to know about Anthropic
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The strong debut highlights robust investor demand for the company's shares, particularly among Hong Kong retail investors, despite weakness in the broader market.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)
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