BrainAurora shares trade flat in Hong Kong debut, as city eyes IPO crown in 2025

Shares of BrainAurora Medical Technology, a provider of medical diagnostics and digital therapies, traded flat in their Hong Kong debut on Wednesday, in the city’s first initial public offering (IPO) of the year.

The stock, which trades under the 6681 code, opened at HK$3.22. The Hang Seng Index slipped 0.4 per cent at 9.49am local time, following a decline on the previous day that was brought about by heightened geopolitical tensions impacting Chinese technology stocks.

BrainAurora’s HK$3.22 listing price values the company at HK$4.08 billion (US$525 million). It attracted 11.39 times the number shares allocated to retail investors, who were betting on the booming themes of healthcare and technology. The firm was listed under a rule called chapter 18A, which allows pre-revenue biotech companies to list in the city.

“This listing marks our entry into the fast lane of the international capital market as we became a new member of Hong Kong’s [chapter] 18A,” said BrainAurora chairman Tan Zheng, who struck the ceremonial gong at the stock exchange at 9.30am.

The listing comes amid hopes that Hong Kong will regain its crown as the world’s top venue for new share offerings after a better 2024. IPO proceeds in the city surged 87 per cent year on year to US$11 billion in 2024, according to the London Stock Exchange Group. This elevated the city to fifth on the global IPO league table in December, up from 13th in June and eighth in 2023. Hong Kong was the world’s top IPO venue seven times between 2009 and 2019.