Hong Kong IPO Market Gains Momentum with Billion-Dollar Listings from Hengrui Pharmaceuticals and Mirxes

15 May 2025

Shanghai-listed Jiangsu Hengrui Pharmaceuticals aims to raise as much as US$1.27 billion. Photo: Shutterstock

HONG KONG - Hong Kong’s capital market revival continues to gather pace as major players line up billion-dollar initial public offerings (IPOs), signaling renewed investor confidence and global interest. On Thursday, two notable companies, Jiangsu Hengrui Pharmaceuticals, China’s largest drugmaker, and Singapore-based biotech firm Mirxes Holding, filed for significant listings on the Hong Kong stock exchange.

Hengrui Pharmaceuticals: US$1.27 Billion Listing

Jiangsu Hengrui Pharmaceuticals, already listed in Shanghai, is launching a secondary share offering in Hong Kong to raise up to HK$9.89 billion (US$1.27 billion). The IPO comprises 224.5 million shares priced between HK$41.45 and HK$44.05, with 5.5% of shares allocated for local retail investors and the remainder targeting global investors.

The top price reflects a 23% discount compared to the company’s Shanghai share price—an expected strategy to attract interest for offshore listings. The company reported strong 2024 performance, with:

47.3% year-on-year growth in earnings to 6.34 billion yuan (US$879 million)

22.6% increase in revenue

Notably, seven cornerstone investors, including Singapore’s GIC and Invesco Advisers, have pledged US$533 million to the IPO. Proceeds will primarily support research and development, along with expanding production and research facilities both in China and internationally.

Founded in 1970 as the Lianyungang Pharmaceutical Factory, Hengrui has transitioned from manufacturing generics to focusing on innovative drug development, underscoring its evolution into a global pharma leader.

Mirxes Holding: Biotech Firm Eyes HK$1.09 Billion

Mirxes Holding is the latest firm to take advantage of Hong Kong Exchanges and Clearing’s Chapter 18A regime, which enables pre-revenue biotech companies to list. The Singapore-based firm, focused on early disease screening—notably gastric cancer detection—is aiming to raise HK$1.09 billion by offering 46.6 million shares at HK$23.30 each.

Mirxes plans to use the funds to:

Develop and commercialise its lead product

Expand its product pipeline

Grow its presence across Asia, especially in Singapore and Mainland China

This listing follows IFBH, another Singapore-incorporated company and the world’s second-largest coconut water bottler, which filed for a Hong Kong IPO last month.

Market Outlook: Capital Markets Rebounding

These IPOs mark a strong continuation of the positive momentum in Hong Kong’s capital markets, which began recovering in late 2024 after a prolonged slowdown. As of end-April 2025:

Total market capitalisation reached US$38.8 trillion, up 21% year-on-year

The Hang Seng Index hit a two-month high, buoyed by positive corporate earnings and easing US-China tensions

The current surge also follows the recent IPO filing from battery giant CATL (Contemporary Amperex Technology), which seeks to raise US$4.6 billion, reinforcing Hong Kong's renewed appeal as a capital-raising hub.

Trading Debut

Both Hengrui Pharmaceuticals and Mirxes Holding are set to debut on the Hong Kong stock exchange on May 23, a date now closely watched by investors tracking the city’s market revival.

With heavyweight IPOs, strong investor backing, and supportive regulatory regimes, Hong Kong is poised to reclaim its stature as one of the world’s leading IPO destinations in 2025.