BRIEF: Hangzhou Diagens doubles in Hong Kong debut
Shares of medical device maker Hangzhou Diagens Biotechnology Co. Ltd. (2526.HK) more than doubled in their Hong Kong trading debut on Monday, as Hong Kong’s hot IPO market recorded four new listings in a single day – the most this year.
Diagens raised about HK$720 million ($92 million) in net proceeds by selling about 8 million shares for HK$99 each. The portion of the listing for local Hong Kong investors was more than 1,000 times oversubscribed, while the international portion was 2.45 times oversubscribed.
The stock opened at more than double the IPO price, and held on to most of the gains to trade at HK$215 midway through the afternoon session, up 117%. That gave the company a market value of about HK$19.1 billion.
Diagens’ revenue rose more than fivefold to 111.6 million yuan ($16.1 million) in the first nine months of last year from 19.6 million yuan in the same period a year earlier. Its loss over that time narrowed to 36.3 million yuan from 50.4 million yuan.
Diagens was one of four companies to make their trading debuts on Monday, alongside Shandong Extreme Vision Technology Co. Ltd. (6636.HK), Guangdong Huayan Robotics Co. Ltd. (1021.HK) and Epiworld International Co. Ltd. (2726.HK). All four stocks were up in Monday afternoon trading in Hong Kong. The four new listings marked a high for new debuts on a single day since six stocks made their trading debut on Dec. 30 last year. Nearly 40 companies have listed in Hong Kong so far this year, even though the first quarter is typically a slow period due to the Lunar New Year holiday.
By Doug Young
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