Hong Kong investors reap windfall from dental braces maker Angelalign as small IPOs shine in the absence of blockbuster deals

Angelalign’s shares closed at HK$401 per share, 132 per cent higher than their offer price of HK$173

The Chinese maker of orthodontic braces raised HK$2.91 billion in its IPO, one of only seven this quarter, as New York steals the limelight

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Private dental practice in China has been growing dramatically in less than 10 years, to over 35,000 clinics and continuing to rise, with some 100,000 dentists in China, meaning one dentist for every 33,000 people, versus 1 to 4,000 in developed countries. Photo: Golden Pixels/Corbis

Published: 10:49am, 16 Jun 2021Updated: 5:33pm, 16 Jun 2021

Small is beautiful again in Hong Kong’s initial public offerings (IPOs) as retail investors reaped a windfall from some eye-catching market returns in the absence of blockbuster tech listings. Angelalign Technology is extending that stellar run.

Shares of the Chinese maker of clear orthodontic braces soared in its trading bow on Wednesday, more than doubling the money for retail investors who turned its HK$2.91 billion (US$374 million) offering into the city’s best market debutant so far this quarter.

Angelalign closed at HK$401, a 132 per cent jump over its IPO price of HK$173. Over the course of this quarter, the stock has delivered the biggest first-day bonanza. Cancer-screening services firm New Horizon Health is the best-performing IPO this year, gaining 215 per cent in its February bow.

Investors have focused their bets on smaller companies with niche market positions amid a sputtering IPO market in Hong Kong this quarter, with New York snaring most of the jumbo listings. Hong Kong is credited with only seven listings this quarter, versus 33 in the first three months of 2021, the fewest since 2009 according to Refinitiv.

New York has seen a bumper harvest, with year-to-date IPO proceeds of US$171 billion already surpassing the total in 2020, according to Reuters.