2652.HK
Butong made an IPO

Shares of pharmaceutical manufacturer CF PharmTech Inc. (2652.HK) roared out of the gate in their Hong Kong trading debut on Wednesday, opening up 219% before giving back some of the gains to close up 181% at HK$41.50 by the midday break.

The company sold 41.2 million shares for HK$14.75 apiece. The portion for local Hong Kong investors was oversubscribed by nearly 6,700 times, leading to just a 1% allocation probability for each lot application. The international portion was more than 11 times oversubscribed, with the overall share sale raising total net proceeds of HK$525 million ($67.3 million).

CF PharmTech develops and produces inhaled therapies, specializing in respiratory disorder treatments. Its revenue edged down 2.7% year-on-year to 136 million yuan in this year’s first quarter, even as its profit for the period more than doubled to 12.8 million yuan.

By Lau Chi Hang

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