Chinese mainland vaccine manufacturer Ab&B Bio-Tech saw its shares skyrocket on its first day of trading in Hong Kong, as the company capitalized on the strong demand from retail investors and a booming healthcare sector.
Shares of the Jiangsu province-based firm, which specializes in influenza and rabies vaccines, surged as much as 170 percent from its offering price of HK$12.9 ($1.64) in the morning trading session, hitting a high of HK$34.8. The stock ended the day at HK$33.28, up almost 158 percent.
Ab&B’s initial public offering (IPO) drew fervent interest from retail investors. They poured in more than HK$210 billion in subscriptions, making the public tranche oversubscribed by more than 4,007 times.
READ MORE: Mainland flu shot maker soars nearly 160% in HKSAR trading debut
This marks the third-highest oversubscription rate in the Hong Kong stock market this year, trailing only mainland toymaker Bloks Group and bubble-tea chain Mixue Group.
The company plans to channel over 80 percent of the IPO proceeds into advancing its core vaccine products and those under development, including clinical trials and regulatory filings in domestic and international markets.
The blockbuster debut came amid a rally in the Hong Kong stock market’s healthcare sector. More than 10 biomedicine companies have reportedly listed in Hong Kong this year.
According to a report released by Zhongtai International Securities, the benchmark Hang Seng Index rose 2.9 percent in July, its third straight monthly gain, climbing to a three-and-a-half-year high. Healthcare stocks led the charge, surging 22.8 percent.
The biopharmaceutical sector in Hong Kong extended its upward momentum on Monday, with most of the players posting gains. WuXi XDC Cayman surged nearly 4.2 percent, closing at HK$58.4, while Shanghai Junshi Biosciences and Henlius both advanced more than 3.5 percent.
The report says it is likely that the rise was mainly fueled by optimism over major licensing deals for innovative drugs.
For instance, Jiangsu Hengrui Pharmaceuticals Co announced in late July that it has reached an agreement with GSK, one of the world’s largest pharmaceutical companies, under which Hengrui will license a clinical-stage respiratory drug and 11 preclinical ones to the London-based pharma giant for a potential price of $12 billion.
This is the 100th license-out transaction by Chinese drugmakers in 2025, and the total value of these deals has exceeded $60 billion, according to Pharmcube, a healthcare data provider.
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Another research report by CITIC Securities expressed long-term optimism about the new drug sector, citing a favorable policy environment.
The National Healthcare Security Administration recently announced plans to establish an initial pricing mechanism for newly marketed drugs, which is expected to support innovative drugs by ensuring that they achieve returns during the early stages of their launch that are commensurate with their high investment and risks.
The Hang Seng Index rose 0.19 percent on Monday to close at 24,906.81.
Contact the writer at irisli@chinadailyhk.com
