China's Neusoft Xikang sinks 35% in Hong Kong trading debut, while AI firm gains (updated)

Phancy

28/09/2023 03:01

(Updates opening share prices and adds deal detail)
    By Scott Murdoch and Donny Kwok
       SYDNEY, Sept 28 (Reuters) - 
    Shares in Chinese hospital cloud software firm Neusoft
Xikang  9686.HK  slumped nearly 35% in the company's Hong Kong
trading debut on Thursday, as sentiment towards some new share
sales remained weak.
    The company raised $81.5 million in its initial public
offering (IPO) last week and priced the shares at HK$4.76 each,
the bottom end of the price range flagged to investors.
        Neusoft Xikang opened down 22.4% and sold off sharply
early in the Hong Kong trading session on Thursday.
        Investor demand for the share sale was weak, with retail
shareholders not taking up their full entitlement in the deal,
according to the company's Hong Kong Stock Exchange filings.
    The institutional portion of the deal was only covered 1.15
times, which is considered weak demand during an IPO.
        Separately, Chinese AI startup firm Beijing Fourth
Paradigm  6682.HK  opened 13.4% higher at HK$63.10 per share in
its Hong Kong trading debut on Thursday.
    The firm raised $151 million in its IPO and also priced its
shares at the low point of the price range.
    Beijing Fourth Paradigm is on the U.S. entity list, which
means U.S. suppliers are barred from shipping U.S. technology to
the company unless they can procure a hard-to-obtain licence
from the Commerce Department.
        Retail demand for Beijing Fourth Paradigm was considered
stronger than usual with that tranche 11.4 times covered,
according to its filings.
 ($1 = 7.8238 Hong Kong dollars)

 (Reporting by Scott Murdoch in Sydney and Donny Kwok in Hong
Kong; Editing by Himani Sarkar and Lincoln Feast)
 ((Scott.Murdoch@thomsonreuters.com;))