Chinese biotech firm Leads Biolabs jumps 92 percent on its Hong Kong debut

Chinese biotech firm Nanjing Leads Biolabs (9887) surged more than 90 percent on its Hong Kong debut on Friday, delivering a paper gain of more than HK$3,200 per board lot for investors. 

The stock rocketed as much as 127 percent to nearly HK$80 apiece, before paring the gain to HK$67.1 at the close, which was still nearly 92 percent from its offering price of HK$35, the top end of its marketed price range.

The biotech firm’s retail tranche was nearly 3,500 times oversubscribed, triggering a claw-back mechanism that allowed retail investors to subscribe to 43.48 percent of the shares sold in the initial public offering. 

It also exercised an upsize option to issue an additional 15 percent, or 4.8 million shares, in the share sale, raising a total of HK$1.29 billion. 

Founded in 2012, the company focuses on the discovery, development, and commercialization of new therapies in oncology, autoimmune, and other severe diseases, according to its prospectus.