IPO Spotlight: Longbio-B Soars on Debut as Investor Demand Soars

Deep News06-05

The Hong Kong IPO market has maintained its robust momentum, with several new listings such as Shougang Langze (02553.HK) and Shenyan Intelligent (02723.HK) posting significant surges after their debuts. On June 5th, the market welcomed three new listings on the same day, with Longbio-B (01779.HK) showing the strongest performance, gapping up sharply. At the time of writing, its shares have surged nearly 48% to HK$142.

Judging by its recent bookbuilding performance, the Hong Kong public offering for Longbio-B was met with overwhelming investor enthusiasm, being oversubscribed by 4,762.58 times. The final number of shares allocated under the public offering was 1,419,350, representing approximately 10% of the total offer shares. The company received approximately 266,400 valid applications in total, accepted around 28,100 applications, with a one-lot winning probability for Group A applicants of about 2.00%.

Furthermore, during the international placing, Longbio-B was oversubscribed by 10.94 times. The final number of shares allocated under the international offering was 12,773,800, equivalent to 90% of the total offer shares. The data clearly indicates that the public offering for Longbio-B was met with fervent investor demand, reflecting highly positive sentiment.

Longbio-B set its final offer price at HK$96.06. At the time of writing, its share price stands at HK$142. With a board lot size of 50 shares, and excluding handling fees, a one-lot investment would yield a profit of HK$2,297. This also means cornerstone investors, including OrbiMed, Gaoyi Asset, Ruifeng Fund, and Fullgoal Fund, are already sitting on substantial paper gains. These cornerstone investors were collectively allocated 7,090,400 shares, representing 49.96% of the global offering.

Company Background and Pipeline

According to its prospectus, Longbio-B is a clinical-stage biotechnology company focused on the research and development of innovative drugs for allergic and autoimmune diseases. The company's core product, LP-003 (an anti-IgE antibody), works by blocking free IgE and inhibiting IgE-mediated allergic reactions. Its indications include seasonal allergic rhinitis, chronic spontaneous urticaria, and allergic asthma. Another key product, LP-005, is a dual-function antibody fusion protein targeting complement components C5 and C3b for treating related renal and hematological indications. Both products have received Investigational New Drug (IND) approval from China's National Medical Products Administration (NMPA) Center for Drug Evaluation (CDE).

In its research and development pipeline, the company is also developing LP-00A, a dual-function autoimmune antibody for allergic diseases; LP-00C for B-cell-mediated autoimmune diseases; and several tissue-optimized dual-function antibodies (such as LP-00D). The prospectus shows that LP-003, designed with a novel sequence, has already obtained IND approvals or initiated related clinical trials in China for multiple indications, including seasonal AR, CSU, allergic asthma, chronic rhinosinusitis with nasal polyps (CRSwNP), and food allergies.

The company is currently conducting a Phase III clinical trial in China for LP-003 in seasonal AR and plans to submit a Biologics License Application (BLA) to the NMPA by or before the third quarter of 2026. LP-003 targets the same field as the global blockbuster drug Omalizumab. The prospectus indicates that in head-to-head clinical trials against Omalizumab, LP-003 demonstrated significantly superior efficacy: its binding affinity to the target is 860 times higher, and its biological activity is 30 times higher.

Financial Snapshot

Longbio-B currently has no commercialized products and therefore has not generated revenue from its principal operations, only recording minor other income and gains of RMB 3.07 million and RMB 5.586 million in 2024 and 2025, respectively. Its total comprehensive losses for the years were RMB 137 million and RMB 176 million, with research and development expenses constituting the major expenditure.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment