Chinese biotech firms surge on OTC markets ahead of Hong Kong IPO debuts

Two Chinese biotech firms, including AI-driven drugmaker METiS TechBio, surged in the gray market on Tuesday ahead of their Hong Kong debuts. 

METiS TechBio skyrocketed as much as 357 percent to HK$48 apiece at one point on Phillip Securities’ over-the-counter trading platform, delivering a paper gain of HK$18,750 per board lot of 500 shares. 

It was then traded at HK$29.22, still up by 178 percent from the offer price of HK$10.5. The company recorded an oversubscription of more than 5,100 times for the retail tranche after pulling in over HK$544 billion in margin loans.

It aims to raise HK$2.1 billion from the share sale. 

The other biotech company, Impact Therapeutics, also jumped as much as 159 percent to HK$52 on Futu’s platform, meaning a paper profit of over HK$6,380 per lot of 200 shares.

The gain later narrowed to 65 percent, or HK$2,640 per lot, compared to the offer price of HK$20.1.

 

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