(01:46 GMT) *Guangdong True Health Medical Technology Development Shares Open 159% Higher in Hong Kong Debut (01:47 GMT) *True Health Medical Technology Shares Last Trading 178% Higher From IPO Price (03:04 GMT) Guangdong True Health Nearly Triples in Hong Kong Trading Debut
By Jason Chau
Shares of Chinese biotech company Guangdong True Health Medical Technology Development soared in their Hong Kong trading debut as investors rotate out of artificial intelligence-related stocks and into China's healthcare companies.
True Health's shares nearly tripled from its offering price early Tuesday after the company raised 404.9 million Hong Kong dollars, equivalent to US$51.6 million. It sold 3.2 million shares, priced at HK$126.20 each, in its initial public offering.
The stock was recently 177% higher at HK$349.20.
True Health, which develops percutaneous puncture and ablation surgical robots used to treat lung and abdominal punctures, said in its exchange filing it plans to use the funds raised to support research and development, product commercialization and the expansion of its manufacturing capacity.
The company's successful debut underscores strong investor confidence in China's biotech and robotics sectors.
The listing also comes amid mounting investor concerns over AI companies' stretched valuations, prompting them to seek alternative, high-growth sectors for attractive investment opportunities.
Write to Jason Chau at jason.chau@wsj.com