HONG KONG - Wuxi XDC Cayman, a subsidiary of Wuxi Biologics specializing in cancer treatment development, saw its shares soar by 31% on its first trading day in Hong Kong. The initial public offering (IPO) of the company was a resounding success, raising HK$3.68 billion (US$471.7 million), despite a challenging market environment that has seen a substantial decline in IPO funds in Hong Kong since last year.
The biotech firm, focusing on the creation of antibody-drug conjugates for cancer therapy, attracted significant interest from investors, with applications for shares nearly 50 times the amount available. This high demand points to an oversubscribed offer, signaling strong investor confidence in Wuxi XDC's market potential and business model.
Major global investors including Invesco, Qatar’s sovereign wealth fund, and HongShan have shown their support for Wuxi XDC by making substantial commitments. The successful debut of Wuxi XDC is noteworthy as it comes at a time when the Hong Kong IPO market has experienced a downturn, with far fewer funds raised compared to the previous year.
The robust opening performance of Wuxi XDC highlights investor appetite for new and innovative companies in the healthcare sector, particularly those involved in cutting-edge cancer treatments. The company's promising start may encourage other biotech firms considering public listings, despite broader market uncertainties.
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