HutchMed soars 50pc on debut as tea chain fizzles

CK Hutchison (0001)-backed cancer drug-maker HutchMed (China) (0013) soared 50.4 percent but another high-profile debutant Nayuki (2150) dropped more than 13 percent as the firms made their trading debuts in Hong Kong.

HutchMed once doubled its offer price of HK$40.1 but closed at HK$60.3 with a turnover of HK$2.18 billion. The company raised HK$3.95 billion from its Hong Kong share sale, two years after it postponed its listing plan over market uncertainties amid social unrest in the city.

The company, whose net loss widened to US$125.73 million (HK$980.69 million) last year, is aiming to break even in late 2024 or 2025, chief executive Christian Hogg said.

HutchMed will maintain its R&D investment at around US$300 million to US$350 million each year. With the commercial launch of oncology medicines, it estimates sales will rise between US$110 million and US$130 billion this year.

The firm plans to have 13 oncology drugs in clinical trials by the end of the year, and is hopes to have 25-30 proprietary cancer drugs in five years, Hogg said.

HutchMed is already listed in New York and London but it doesn't have plans to delist from either of them after going public in Hong Kong, he said.

The company succeeded the stock code of 13 from Hutchison Whampoa, the predecessor of CK Hutchison.

Hogg said the number 13 means in good luck in Cantonese and carries positive vibes, adding that HutchMed is proud to continue the long history of Hutchison Whampoa.

Meanwhile, Chinese bubble tea chain Nayuki ended 13.53 percent lower at HK$17.12 on its debut. The deal was oversubscribed by 431 times by retail investors.

Going public in Hong Kong is a challenge to Nayuki as there is no comparable company in the exchange, said founder Peng Xin.

Separately, Chinese electric vehicle maker Xpeng raised HK$14 billion after pricing its Hong Kong dual primary listing at HK$165 apiece, 8.3 percent lower than the maximum offer price.

As many as 14 firms launched IPOs yesterday. The hottest deal was Kindstar Globalgene Technology, which provides esoteric clinical testing services in mainland China. Retail investors have placed HK$33 billion in IPO orders through margin financing, meaning the retail portion was oversubscribed by 148 times. The Wuhan-based firm aims to raise as much as HK$2.2 billion with a minimum investment of HK$4,939.27 per board lot.