Biotech tests investor mood amid market mayhem

Reuters and staff reporter

Chinese biotech firm Duality Biotherapeutics launched an initial public offering of up to HK$1.56 billion yesterday in Hong Kong, testing investor appetite amid a global stock market rout.

The company is selling 15.07 million shares in the price range of HK$94.60 to HK$103.2 each, according to its prospectus.

The launch came while Hong Kong's Hang Seng Index plunged 13.2 percent as global financial markets reacted to fears of a global recession sparked by US President Donald Trump's tariff war.

Duality, which is an antibody-drug conjugate developer, said cornerstone investors have agreed to buy up to US$65 million (HK$507 million) worth of shares in the IPO.

The final price of the IPO is due to be set on April 11, with the stock on track for a trade debut on April 15, the prospectus added.

Meanwhile, Lalatech, the parent company of Chinese on-demand logistics and delivery firm Lalamove, has filed for an IPO in Hong Kong for the fifth time.

Goldman Sachs, BofA Securities, and JPMorgan are joint sponsors.

The company said the IPO proceeds will be used to grow its mainland China business, improve infrastructure, and accelerate global expansion - particularly in the Middle East and to deepen its reach in South Asia.

In 2024, Lalatech posted an adjusted profit of around US$500 million, marking a year-on-year increase of over 28 percent.

However, its net profit dropped 55.5 percent to US$432 million.

Lalatech completed more than 770 million orders in 2024.

As of the end of last year, it operated in 11 key markets and over 400 cities worldwide, including mainland China, Hong Kong, Southeast Asia, Mexico and Brazil.

Markets outside of China and Hong Kong contributed around 9.3 percent of the company's revenue.