By P.R. Venkat


Wuxi XDC Cayman's shares surged at their Hong Kong debut but high investor demand meant some investors missed out at the company's initial public offering.

Shares of the company, a unit of Chinese contract drugmaker Wuxi Biologics, rose to an intraday high of HK$28.80, 40% higher than their IPO price of HK$20.60 a share.

The stock was at HK$27.90 at Friday's midday break.

"Wuxi XDC presents one of the best China Healthcare mid-cap opportunities," Jefferies analysts said in a note. They initiated coverage of the stock with a buy rating and said the stock could reach HK$40.00 with the bank's bull-case scenario.

People familiar with the deal had said earlier that Wuxi XDC closed its order book early due to strong demand. The company said Thursday that its public offer was "significantly oversubscribed."

It said 30,726 valid applications had been received under the Hong Kong public offering, representing approximately 49.96 times the total 17.85 million shares initially available for public offering.

The company, which does research, development, and manufacturing with a focus on antibody-drug conjugate, a type of medicine for cancer treatment, had raised 3.68 billion Hong Kong dollars, the equivalent of US$471.7 million, in the IPO.

Wuxi XDC is one of several companies listing in Hong Kong, which has had a weak year for new offerings. IPO funds raised in the city in the first nine months of the year fell to HK$24.6 billion from HK$73.7 billion in the same period last year.

Wuxi XDC's IPO secured commitments from some global investors, including Invesco, Qatar's sovereign wealth fund, and HongShan, the investment firm formerly known as Sequoia Capital China, according to Wuxi XDC's listing document.


Write to P.R. Venkat at venkat.pr@wsj.com


(END) Dow Jones Newswires

11-17-23 0000ET