Chinese drug developer Biokin postpones Hong Kong listing, citing ‘market conditions’
Decision likely reflects ‘some pullback in risk appetite, with growth-stock share prices coming off their highs’, Morningstar analyst says
Chinese drug developer Sichuan Biokin Pharmaceutical has postponed its Hong Kong share listing, which had been scheduled to begin on Monday, as enthusiasm for initial public offerings (IPOs) in the sector may be cooling, according to analysts.
The company cited “prevailing market conditions” in a stock-exchange filing on Wednesday and said it was assessing an updated timetable, but did not provide further details. The decision “does not affect the company’s current business”, it added.
Listed in Shanghai in 2023, Biokin filed for a secondary listing in Hong Kong in July, aiming to raise about 3 billion yuan (US$422 million) – part of a wave of mainland technology and biotech firms hoping to seize on the city’s red-hot capital market.
“We think the decision to postpone the Hong Kong IPO is likely to be reflective of some pullback in risk appetite, with growth-stock share prices coming off their highs,” said Lorraine Tan, director of equity research for Asia at Morningstar.
“We note that the share prices of China biotech companies have eased quarter-to-date. This may reflect that earlier excitement has waned as valuations were high, sector rotation or just a rebalancing of portfolios towards year-end. This may have impacted the IPO price for the company.”
Biokin had intended to use the listing proceeds to fund research and development and to establish a global supply chain by building or acquiring manufacturing facilities outside China.