The Hong Kong IPO market is heating up. Today, BAO PHARMA-B (02659), a new Hong Kong-listed stock, surged over 115% in dark pool trading. Based on a lot size of 100 shares, investors could earn HKD 3,057 per lot, excluding fees. BAO PHARMA-B is set to debut on the Hong Kong Stock Exchange tomorrow (December 10), with CITIC Securities and Guotai Junan Securities as joint sponsors.
BAO PHARMA-B conducted its IPO subscription from December 2 to 5. Market data shows that, as of December 5, the stock attracted HKD 269.21 billion in margin financing, oversubscribed by 2,690.8 times against its public offering size of HKD 100 million.
**Dark Pool Surge** On December 9, BAO PHARMA-B’s shares soared over 115% in dark pool trading. By the close of dark pool trading, the stock was priced at HKD 56, up 112.28% from its IPO price of HKD 26.38.
The company issued a total of 37.9117 million H-shares globally, with 90% allocated to international investors and 10% to Hong Kong public investors.
Notably, BAO PHARMA-B’s IPO attracted strong cornerstone investors, including Anke Biotechnology Hong Kong and DC Alpha SPC, which collectively subscribed for HKD 200.6 million, accounting for 20.06% of the total funds raised.
Founded in 2019 and headquartered in Shanghai, BAO PHARMA-B is a clinical and commercial-stage biotech firm specializing in recombinant biologics using synthetic biology. Its pipeline includes 12 self-developed candidates, with three core products.
One of its key products, a long-acting fertility drug approved in August, has already entered the market. Another high-volume subcutaneous delivery product has submitted an NDA, while a drug for desensitization in organ transplants and autoimmune diseases is in late-stage Phase III trials. Additionally, the company is preparing Phase III trials in China for anti-GBM disease, a rare autoimmune condition.
Financially, BAO PHARMA-B remains unprofitable. Revenue for 2023 and 2024 stood at RMB 6.93 million and RMB 6.16 million, respectively, with net losses of RMB 160 million and RMB 364 million. In H1 2025, revenue surged 2,716.23% YoY to RMB 41.99 million, but net losses widened to RMB 183 million.
**Hot IPO Market** Despite a sluggish broader market, some new listings have shone. ABLE DIGITAL (02687) skyrocketed 111% on its debut (December 8) before closing up 87.26%. On December 9, the stock rose another 16% to HKD 146.6 per share.
ABLE DIGITAL is a leading provider of digital education solutions for higher education in China, covering teaching, learning, assessment, and management. According to Frost & Sullivan, it ranked second in China’s higher ed digital market (4.0% share) and first in digital content production (7.3% share) in 2024.
Hong Kong’s IPO market has been vibrant this year. Wind data shows 91 companies raised HKD 259.889 billion in the first 11 months, up 228% YoY, topping global exchanges. Investor participation has also surged, with average oversubscription hitting 1,675x in 2025, a five-year high.
IPO returns have improved significantly. As of November 26, the average first-day return for 2025 listings (excluding SPACs, transfers, and introductions) reached 38%, up 347 percentage points YoY, while the first-day drop rate fell to 23.08%, a five-year low.
EY’s IPO report predicts steady growth for Hong Kong’s IPO market in 2026, driven by A+H listings, U.S.-listed Chinese firms returning, and specialized tech companies in AI and biotech.
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