(Bloomberg) -- Chinese contract drug manufacturer Asymchem Laboratories Tianjin Co. dropped in its first day of trading in Hong Kong, after completing the Asian financial hub’s biggest initial public offering in more than two months.
The shares fell as much as 4.5% to HK$370.40 on Friday. They were sold at HK$388 apiece in an IPO that raised about HK$7.15 billion ($917 million). The H-shares had been marketed at between HK$350 and HK$410 and were ultimately priced at a discount of 34% to Asymchem’s Shenzhen-listed stock.
Asymchem is the largest IPO in Hong Kong since Dongguan Rural Commercial Bank Co.’s $1.2 billion deal in September. Hong Kong’s exchange has hosted few large offerings in recent months as Beijing’s clampdowns on various industries soured sentiment in both the primary and secondary markets.
Twelve of 16 IPOs in the city since August raising over $100 million each ended their first session below their listing price, according to data compiled by Bloomberg as of Thursday.
Asymchem, a Tianjin-based contract development and manufacturing organization (CDMO) for the drug industry, plans to use proceeds to add capacity and capabilities as well as increase market share. Goldman Sachs Group Inc (NYSE:GS). and Citic Securities Co. were joint sponsors for the share sale.
Two other smaller debuts in Hong Kong on Friday had mixed performance. Gushengtang Holdings Ltd., a traditional Chinese medicine healthcare service provider, jumped as much as 18% following a $104 million offering. CANbridge Pharmaceuticals Inc., a biopharmaceutical company, dropped as much as 29% following an $88 million IPO.
(Adds trading of smaller IPOs in last paragraph)
©2021 Bloomberg L.P.