China’s Duality Biotherapeutics Shares Rise 130%

[SYDNEY] Duality Biotherapeutics stock more than doubled on its Hong Kong debut on Tuesday (Apr 15), after the Chinese firm raised US$213 million in an initial public offering (IPO) launched the day financial markets reacted savagely to a US tariffs announcement.

Duality Biotherapeutics’ Hong Kong Debut

The stock rose as high as HK$218 each, a gain of 130.4 per cent from its HK$94.60 issue price. Hong Kong’s Hang Seng Index was up 0.3 per cent in early trade.

IPO Details

Duality sold 17.33 million shares in its IPO at the bottom of a HK$94.60 to HK$103.20 indicative price range. It initially planned to sell 15.1 million shares but exercised an option to increase the number due to demand, regulatory filings showed.

Book-Building Process

Book-building started on Apr 7 when Hong Kong’s Hang Seng Index dropped 13 per cent, the benchmark’s worst one-day performance since 1997.

Company Profile

Duality is developing therapeutic drugs for cancer and autoimmune disease patients, its prospectus showed.

Tariffs Impact

The majority of its products are unlikely to be subject to US import tariffs because of licensing agreements, analysts said. That contributed to the stock’s popularity, they said.

Analyst Comments

“The success of the deal is a positive sign that when a deal has solid fundamentals, it will be able to garner interest in this volatile market,” said Aequitas Research analyst Ke Yan, who publishes on Smartkarma.

“It’s also an indication that international investors are returning to China.”

Investor Interest

Eleven cornerstone investors from both China and abroad subscribed to US$65 million worth of Duality stock.

The IPO also attracted strong interest from retail and institutional investors, Duality’s filing showed, even at a time of global financial market turmoil.

Conclusion

The success of Duality Biotherapeutics’ IPO is a positive sign that solid fundamentals can attract investor interest in a volatile market. The company’s focus on developing therapeutic drugs for cancer and autoimmune disease patients, combined with its licensing agreements that make its products less susceptible to US import tariffs, contributed to its popularity.

FAQs

Q: What was the issue price of Duality Biotherapeutics’ stock?

A: The issue price was HK$94.60.

Q: How much did Duality Biotherapeutics raise in its IPO?

A: The company raised US$213 million.

Q: What is Duality Biotherapeutics developing?

A: The company is developing therapeutic drugs for cancer and autoimmune disease patients.

Q: Are Duality Biotherapeutics’ products subject to US import tariffs?

A: No, the majority of its products are unlikely to be subject to US import tariffs due to licensing agreements.