Tigermed Roars in its Hong Kong Stock Trading Debut, as Asia's Largest Healthcare IPO of 2020

According to scmp.com, Hangzhou Tigermed Consulting ("Tigermed"), the biggest listing this year by an Asian health care provider, jumped by as much as 19 per cent in its Hong Kong trading debut, as investors piled into China's largest clinical researcher, betting that some of its 400 trials under way would bear fruit.

Tigermed's shares began trading at HK$119, soaring from their initial public offering price (IPO) of HK$100. Yuan-denominated A shares of the company, based in the Zhejiang provincial capital, fell by as much as 4.9 per cent to 107 yuan (HK$119) on the ChiNext Board in Shenzhen.

"The scope of Tigermed's clinical and laboratory service offerings provide an edge against peers, in our view," according to Mia He, a senior analyst at Bloomberg Intelligence. "It offers data management and statistical analysis, which play a vital role in the clinical development of drugs and creates a high barrier to entry."

Tigermed is among the many Chinese companies that have flocked to Hong Kong to make use of the bourse's relaxed listing rules for pharmaceutical research teams – even those that have not sold any products – to raise capital. Tigermed plans to use fund its overseas expansion, amid a surge in clinical trials for medicines and vaccines for treating coronavirus infections. The company may also use some funds for overseas acquisitions.

Tigermed showed all the signs of a stellar debut. Its offering, priced at the top end of a marketed range of between HK$88 to HK$100, was overbought by 20 times, making it one of the most sought-after IPOs in Hong Kong.

Since its inception in 2004, Tigermed is a Chinese contract research organization (CRO) providing whole process clinical trial services for new drug research and development and other supporting services to global and Chinese pharmaceutical and biotechnology companies.

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