BRIEF: Heavily oversubscribed CF PharmTech triples in Hong Kong trading debut
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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