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Investing.com– Shares of Ascentage Pharma Group International (HK:) plunged on the Hong Kong Stock Exchange on Friday, as investors turned cautious ahead of the debut of the biotech company’s American Depositary Shares (ADS). on the Nasdaq later that same day.
The liquidation underscores investor caution as the company prepares for its U.S. IPO, which will allow global investors to trade its shares more easily.
China-based Ascentage Pharma, which specializes in cancer therapies, on Tuesday announced the pricing of its ADS offering at $20.34 per share, aiming to raise about $149 million, but reduced the priced at $17.25 each on Friday to raise $126 million.
The company’s Hong Kong-listed shares fell 12.5% to HK$36.55 as of 05:43 GMT.
Ascentage is backed by Japan’s largest drug manufacturer Takeda Pharmaceutical Co., Ltd. (YOU:)
The company plans to use the proceeds from the sale of ADS to advance clinical trials, research and development of its targeted therapies and apoptosis-based drug candidates. However, concerns about market volatility and potential stock dilution have weighed on investor confidence, contributing to the sharp decline.
This offering marks the latest step in a trend of dual listings by Chinese biotech companies seeking to expand their investor base and raise capital from US markets.
