Nov. 17 Quick Takes: WuXi XDC’s big gain in first Hong Kong trading day

Aftermarket demand for WuXi XDC Cayman Inc. (HKEX:2268) lifted the contract manufacturer’s shares by 36% in their first trading day to close at HK$28. The move reflects continued enthusiasm for antibody-drug conjugates, particularly in Asia, amid a difficult climate for IPOs. WuXi XDC priced 178.4 million shares at HK$20.60, the top of the proposed range, to raise HK$3.7 billion ($475 million) in its offering; it is the largest IPO in the biotech field on the Hong Kong stock exchange in 2023, according to BioCentury’s BCIQ database.

WuXi XDC, which specializes in manufacturing ADCs and other bioconjugates, said it will use about two thirds of the new cash to construct a manufacturing facility in Singapore and expand capacity in China, while saving the rest for business development and working capital needs. The company performs a range of discovery, development and manufacturing services. Cornerstone investors in the listing included Invesco, General Atlantic, Al-Rayyan Holding, UBS, HongShan Funds, Novo Holdings A/S and Lake Bleu Funds. Underwriters are Morgan Stanley, Goldman Sachs, J.P. Morgan, CICC, Citigroup and HTSC...