Investors are still not showing the expected enthusiasm for the CK Life Sciences International (CKLS) share offer.
They have expressed concern that the Li Ka-shing biotechnology venture, which opened its initial public offering (IPO) on Thursday, did not have the earnings or track record to become a hot issue in the market.
'Investors are getting smarter now. They want to invest in a company that bears more than the name of KS Li,' Celestial Securities director Francis Wong said.
Mr Wong said it would be hard for CK Life to repeat the hype that surrounded sister company Tom.com, which attracted 669 times over-subscription at the peak of the Internet bubble in March 2000.
In a bear market, CK Life is aiming to raise HK$2.61 billion, pricing its shares at between HK$1.80 and HK$2. The company is due to make its Growth Enterprise Market debut on July 17.
The company's listing prospectus reveals the net asset value per share is 42 HK cents, or less than a quarter of the price range. Investment costs for the company majority shareholders - Cheung Kong (Holdings) (44.02 per cent) and chairman Li Ka-shing (29.34 per cent) - are a tiny 10 HK cents per share.