Hong Kong’s bourse defied odds and an outbreak with its first-ever virtual listing ceremony of a Chinese biotech firm that achieved the upper range of projected valuations.
InnoCare Pharma successfully listed as the first virtual IPO in Hong Kong which raised nearly $290 million last week despite ongoing social distancing. The firm had even canceled an investor meeting last month and converted its investor presentations to digital form – another first-ever successful feat.
The retail tranche of the initial offering was nearly 300 times oversubscribed defying a broader dent to the market outlook driven by the ongoing outbreak. Meanwhile, broader markets were experiencing escalated turbulence, posting trading sessions on record. Year-to-date, for example, the Hang Seng Index has already plummeted around 20 percent.
Virtual IPOs
InnoCare Pharma’s feat follows similar listings conducted in Shanghai which kicked off a virtual IPO from a Hubei-based company in February and Shenzhen which welcomed its first cloud-based listing earlier this month.
Despite the success, the Beijing-based cancer drugs developer noted that there was no strong consideration for the timing of its IPO. Its co-founder and chief executive Jasmin Cui Jisong said that the firm would rather «get the IPO behind us so we can focus on the scientific projects,» in an «SCMP» report.
