Advertisement
IPO
BusinessBanking & Finance

QuantumPharm soars in Hong Kong trading debut as traders bet on AI-backed drug researcher

  • Trading under the stock code 2228, QuantumPharm closed with a 10-per cent premium to its initial public offering price of HK$5.28

2-MIN READ2-MIN
QuantumPharm’s trading debut at the Connect Hall of the Hong Kong stock exchange on 13 June, 2024. (L to R) Undersecretary for Innovation Technology and Industry Lilian Cheong, HKEX CEO Bonnie Chan, QuantumPharm’s CFO Tam Man-hong, and Co-Founder’s Ma Jian, Wen Shuhao, Lai Lipeng, Financial Secretary Paul Chan Mo-po, HKEX Chairman Carlson Tong, and Secretary for Innovation Technology and Industry Sun Dong. Photo: Jonathan Wong.
Aileen Chuang
QuantumPharm’s shares soared on their trading debut in Hong Kong, as traders piled into the stock even before the AI-powered pharmaceuticals researcher posted any profit.

Listed under the stock code 2228, QuantumPharm’s shares ended their first trading day at HK$5.80, a 10-per cent premium to the initial public offer (IPO) price of HK$5.28, after briefly soaring by as much as 24.6 per cent. The Shenzhen-based company priced its stock at the lower end of a price range this week.

The company raised HK$989.3 million (US$126.7 million) in its IPO, making it the third-largest stock sale this year in Hong Kong. Public investors oversubscribed the offer by 103 times, triggering a clawback mechanism under the listing rule that increased the shares available for retail investors to 37.48 million, or 20 per cent of the total offering, while reducing the international tranche to 80 per cent.
Advertisement
Founded in 2015 by three quantum physicists trained at the Massachusetts Institute of Technology, QuantumPharm says it combines quantum physics, artificial intelligence (AI), cloud computing and robotics to provide R&D services and products for the pharmaceuticals, biotechnology, renewable energy and advanced materials industries.

“The atmosphere among retail investors has improved significantly, so the current market condition [is conducive to] raising a larger amount,” said KGI Asia’s head of investment strategy Kenny Wen. “If another two or three companies worth HK$20 billion to HK$30 billion succeed in their IPOs and their stocks perform well, that will definitely help the overall market.”

QuantumPharm will use most of its IPO proceeds to enhance research and development capabilities and provide solutions.

Advertisement
Advertisement
Select Voice
Select Speed
1.00x