Tencent-backed drug researcher makes strong HK debut
Shares of Tencent-backed QuantumPharm, also known as XtalPi, on Thursday surged during its trading debut in Hong Kong. It marks the first initial public offering (IPO) under the Hong Kong stock exchange's Chapter 18C listing regime which allows specialist technology companies with a minimum valuation of HK$10 billion to sell shares, even if they haven't generated profits yet. The shares of the artificial intelligence drug researcher closed at HK$5.8, nearly 10 percent above its IPO price of HK$5.28. Public investors oversubscribed the offer by 102 times. Speaking at the listing ceremony, Financial Secretary Paul Chan said the Chapter 18C listing regime could facilitate financing for tech companies in Hong Kong. Chan also said Hong Kong’s role as an international financial centre enables it to attract global capital which in turn supports technology development in the SAR. Bonnie Chan, CEO of Hong Kong Exchanges and Clearing, described the listing as a significant milestone in the city's market development. She added it showcased China’s leading role in the innovation and technology field and Hong Kong's appeal as a global financing hub for the industry. Prior to the listing, Image Frame, a Tencent subsidiary, had a stake of about 13 percent in the newly-listed company.