【New IPO】Tongrentang Medical 2667 debuted at over 13% below its offering price, losing HK$370 per lot. Subscribed by 66k investors, oversubscribed by 250.7 times.

Tongrentang Medical Health (02667), a subsidiary of the Tongrentang Group engaged in traditional Chinese medicine medical services, began trading on its first day, following the trend of Monday's dark pool trading. Tongrentang Medical Health shares opened at HK$4.76, down 13.5% from the HK$5.5 IPO price, resulting in a loss of HK$370 per board lot of 500 shares.

Tongrentang Medical Health's public offering attracted over 66k applicants, with an oversubscription of 250.74 times. The one-lot allotment rate was 8%, and investors needed to subscribe for 300k shares or 600 board lots to guarantee allotment. The international placement was subscribed by 75 placees, with an oversubscription of 1.84 times.

Dark Pool Trading Sunk Over 10%

Tongrentang Medical Health had dark pool trading after Monday's market close.

Across the three major dark pool trading venues, the shares, priced near the lower end of the range at HK$5.5, dropped as low as HK$4.51 in early dark pool trading, down 18% from the IPO price, resulting in a paper loss of HK$495 per board lot (500 shares).

Ultimately, the stock closed in dark pool trading at HK$4.64 to HK$4.74, down 13.8% to 15.6% from the IPO price, with a loss of HK$380 to HK$430 per board lot.

Tongrentang Medical Health plans to issue 110 million H-shares, raising HK$550 million. The original IPO price range was between HK$5.48 and HK$6.21. China International Capital Corporation (CICC) acted as the sole sponsor.

Source: Announcement