Biotech IPO set to break record with $360b frozen

JHBP (CY) Holdings, also known as Genor Biopharma, is said to be oversubscribed by more than 1,200 times for its initial public offering, with HK$360 billion in retail funds frozen, which could be a new record for unprofitable biotech listings in Hong Kong.

That compared with loss-making biotech company Ocumension Therapeutics (1477), which set a record after its retail portion was oversubscribed by 1,895 times in July, with HK$294.4 billion of funds frozen.

Genor is set to raise HK$2.88 billion after pricing the flotation at HK$24, the top end of the indicative price range, according to market sources.

The Hillhouse Fund-backed company, which will debut tomorrow, also saw its institutional tranche oversubscribed by more than 60 times.

Genor has already attracted 12 cornerstone investors, including Hillhouse Fund, OrbiMed Funds, Hangzhou Tigermed Consulting (3347), YF Life Insurance International under Yunfeng Financial (0376).

Founded in 2007, Genor has been focusing on developing and commercializing oncology and autoimmune drugs. However, it still has not made a profit as it has not yet commercialized any products.

After Hong Kong stock exchange's listing reform in 2018, 20 pre-profit biotech firms have started trading in the city, raising HK$48 billion.

Meanwhile, mainland property developer Radiance Holdings is set to kick off its pre-IPO roadshow today, with an aim to raise as much as US$400 million (HK$3.12 billion), Reuters IFR reported.

The Beijing-based company, whose net gearing ratio, or debt-to-equity ratio, surged to 180 percent for the first four months this year, said it plans to use the net proceeds to finance existing projects and repay part of trust loans.

Five companies are opening retail books this week. Among them, Weihai City Commercial Bank, only attracted HK$16.81 million in retail orders through margin loans, meaning its retail portion was only 40 percent covered. The company is seeking to raise up to HK$3.08 billion from the deal.

Separately, Ant Group is planning to price and list its shares in Hong Kong and Shanghai at the same time, which means there will be a six-trading-day gap between pricing day and market debut, compared with a five-day settlement period for other local IPOs, local media reported.

In other news, British food delivery startup Deliveroo has hired Goldman Sachs for its planned IPO that could raise more than 2 billion pounds (HK$20.08 billion), Sky News reported.