Giant Biogene Holding Co.’s stock zoomed higher in its Hong Kong market debut, after the Chinese skincare company raised 549.4 million Hong Kong dollars (US$70.0 million) in an initial public offering.
Xi’an, China-based Giant Biogene’s shares rose 15% to HK$27.95 on Friday morning, compared with its offer price of HK$24.30 a share, amid upbeat market sentiment. The city’s benchmark Hang Seng Index was up 4.0%.
The company said it would use the offering proceeds to strengthen its sales and distribution network, expand manufacturing capacity and boost research and development.
Giant Biogene posted revenue of 1.55 billion yuan (US$212.3 million) in 2021, up from CNY1.19 billion in 2020. Net profit over the same period edged up to CNY828.1 million from CNY826.5 million.
The offering was jointly sponsored by Goldman Sachs and China International Capital Corp.