Money-Losing Cancer Screener Triples in Hong Kong Trading Debut

What’s new: Shares of New Horizon Health Ltd., maker of a colorectal cancer screening test, tripled in their Thursday trading debut in Hong Kong.

The company’s stock ended its first trading day at HK$84 ($10.84), representing a 215% jump from its IPO price of HK$26.66. It raised $263 million from the listing, making its first-day gain the biggest of all time for a company that raised at least HK$2 billion.

Why it matters: The big first-day gain continues a streak for new offshore Chinese listings over the last two weeks, both in New York and Hong Kong, the most popular destinations. Most of those are losing money, and have come from the high-growth tech and biotech sectors.

Last week shares of cloud specialist Cloopen tripled on their first trading day after the company raised $320 million. And a week earlier shares of short video firm Kuaishou also nearly tripled in their Hong Kong debut after it raised $5.4 billion. 

Founded in 2015, New Horizon Health posted 35.3 million yuan ($5.5 million) in revenue in the first nine months of last year, roughly the same as a year earlier, according to its prospectus. Its loss for the first nine months of last year ballooned to 534 million yuan from 63 million yuan in the year-ago period. 

Related: Kuaishou Shares Almost Triple in Hong Kong Debut 

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Yang Ge (geyang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

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