China's Giant Biogene jumps nearly 22% in Hong Kong trading debut (updated)

Giant Biogene Holding

04/11/2022 01:55

(Adds details of IPO)
    By Scott Murdoch and Donny Kwok
       Nov 4 (Reuters) - Giant Biogene  2367.HK  shares rose
almost 22% on Friday as the Chinese company debuted on Hong
Kong's stock exchange after raising $70 million in its initial
public offering (IPO).
    The company's shares opened at HK$26 compared to the
HK$24.30 per share price it had sold 22.6 million shares at.
They then soared to HK$29.55.
    Hong Kong's Hang Seng Index  .HSI  was up 1.8% in early
trade.
    If Giant Biogene's shares maintain their rise, it will be
one of few Hong Kong IPOs to register gains on debut day in
2022.  
    Giant Biogene had planned to raise $500 million in its IPO
but scaled back the size of the deal in response to volatile
global financial markets, sources previously told Reuters.
    The Xian-based skin treatment company priced its shares at
the bottom of the range flagged when the deal launched last
week.
    The retail portion of the IPO was twice oversubscribed by
investors, while the institutional part of the deal was 4.22
times oversubscribed, according to the company's filings. 
    Although still considered weak, the retail investor demand
was higher for Giant Biogene than other recent deals in Hong
Kong, which were undersubscribed. 
    More than 80% of IPOs in Hong Kong this year are trading
under water since their debut, according to Dealogic data. 
 (Reporting by Scott Murdoch and Donny Kwok; Editing by Tom
Hogue and Muralikumar Anantharaman)
 ((Scott.Murdoch@thomsonreuters.com;))