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Key Takeaways:
The TenNor Therapeutics IPO was oversubscribed more than 9,000 times and surged 179% in its first trading session
The company remains firmly in the red, with cumulative losses exceeding 490 million yuan over the past three years
A Chinese biotech specializing in anti-bacterial drugs has pulled off a stellar market debut, as investors bet on the firm's potentially powerful new therapy to combat stomach ulcers and gastric cancers.
The Hang Seng Healthcare Index fell more than 2% last week, but investors nevertheless flocked to newly listed shares in TenNor Therapeutics (Suzhou) Ltd.(6872.HK), which achieved the strongest first-day performance of any firm that has listed so far under Hong Kong's special rules for pre-profit biotechs.
The company's stock opened more than 98% higher and finished with a gain of 179% in the May 22 debut after an IPO marked by strong investor demand.
The offering of nearly 8.86 million shares was priced at HK$75.70 per share, with a lot size of 50, implying an entry threshold of about HK$3,823. The Hong Kong portion was oversubscribed by around 9,000 times, while the international placement achieved a subscription rate of 9.24 times. After expenses, the IPO is projected to raise net proceeds of about HK$598 million ($76 million), with CITIC Securities and ABCI Capital as joint sponsors.
Founded in 2013, TenNor Therapeutics is a clinical-stage biotech that is coming close to launching commercial products. While much of China's innovative drug sector has crowded into oncology, TenNor has focused on anti-infective therapies through its multi-target conjugate technology. Its most keenly watched product is rifasutenizol (TNP-2198), a treatment for ...
