Neautus TCM shares surge 72% on Hong Kong debut after HK$262m IPO
Sichuan Neautus Traditional Chinese Medicine shares closed 71.6 per cent higher on their first trading day in Hong Kong, after the firm raised HK$262 million in an IPO. The retail portion was 2,190.99 times subscribed. Proceeds will fund production expansion and regional sales growth.
Sichuan Neautus Traditional Chinese Medicine (2206) saw its shares close 71.6 per cent higher on their Hong Kong market debut on Wednesday, after the company raised HK$262 million in an initial public offering.
The shares of the Chinese traditional medicine manufacturer opened at HK$51.30, up 27.6 per cent from their HK$40.20 offer price, and hit a high of HK$88.10 during the session. They closed at HK$69.00, while the Hang Seng Index closed 0.98 per cent lower.
Neautus sold 6.52 million shares at the bottom of the HK$40.20 to HK$50.55 price range. The retail portion was 2,190.99 times subscribed, while the international offering was 1.25 times subscribed.
The company said it plans to use the IPO proceeds to expand and automate production, develop wellness products, widen sales in China, Vietnam and Malaysia, and fund working capital.