On December 22, B&K CORP-B (02396) made its official market debut. The stock opened significantly lower than its IPO price, with an initial drop of up to 17.80% within the first 10 minutes, hitting a low of HK$31.4. Despite a brief rebound that brought it within HK$1 of the offering price, the stock failed to sustain upward momentum. In the afternoon session, it resumed its decline, reaching a low of HK$31, down 21.68%. By the close, shares had tumbled 29.32% to HK$27.00.

Dubbed the "first PDGF stock on the Hong Kong market," B&K CORP-B was initially viewed by some investors as a potential year-end biotech winner. However, its first-day performance fell short of expectations.

**"Mechanism B + No Cornerstone" Strategy Under Scrutiny** Compared to Mingji Hospital, which launched its IPO around the same time, B&K CORP-B's placement results appeared stronger. The company issued 17.65 million H-shares (15% of total post-IPO shares), with 90% allocated internationally and 10% to the public, plus a 15% over-allotment option. Priced at the lower end of the range at HK$38.20 per share, it raised HK$674 million (net proceeds: ~HK$600 million).

While Mingji Hospital saw only 3.7x oversubscription in its Hong Kong public offering, B&K CORP-B attracted a staggering 791.95x oversubscription. Since the Hong Kong Stock Exchange's August IPO rule changes, many firms have capped public offerings at 10% to create artificially tight supply, relying on institutional, cornerstone, and anchor investors to stabilize prices. This "Mechanism B" approach previously delivered 100%+ debut gains for stocks like GenFleet Therapeutics.

For B&K CORP-B, its "first PDGF stock" status and limited public offering (8,824 lots) came with a high entry barrier—HK$10,302.88 per lot, well above the 2023 average. High entry fees typically require margin financing to boost allotment odds, fueling HK$50 billion+ in margin subscriptions during the book-building phase.

Yet, despite heavy leverage and market hype, its gray market performance was lukewarm. On December 19, the stock opened at HK$60.00 on Futu’s gray market, peaking at HK$72.15 (+88.87% vs. IPO price), while on Phillip’s platform, it opened at HK$59.20 and topped at HK$60.20 (+57.59%). Both sessions saw sharp pullbacks, with Phillip’s price briefly sinking 9.95% below IPO level. It closed up 5.76% on Futu and a mere 0.58% on Phillip. Notably, B&K CORP-B was the only one of four new listings that day to avoid a gray market loss.

**Absence of Cornerstone Investors Raises Concerns** Unlike typical "Mechanism B" IPOs that rely on cornerstone investors to lock up shares, B&K CORP-B opted for a greenshoe-only structure, leaving its 90% international placement dependent on institutional anchors. However, neither "long-term" nor "trading-driven" anchors appeared to stabilize its debut.

Top net buyers included Yingbao (72,200 shares), Futu (62,800 shares), and BOCI (53,600 shares), while top sellers were Instinet Asia-Pacific (100,000 shares), CITIC (81,800 shares), and TradeGO Markets (37,600 shares). Notably, Huatai International and CITIC Securities—both IPO sponsors and underwriters—were among the sellers.

**"Pre-Revenue 18A" Risks Linger** B&K CORP-B focuses on protein-based therapies for wound healing, with lead candidates Pro-101-1 (burns) and Pro-101-2 (diabetic foot ulcers) in Phase II/IIb trials in China. Pro-101-1 aims for a U.S. IND filing in Q1 2026.

China’s PDGF market remains untapped, with only Tasly Pharmaceuticals advancing a Phase III candidate (stalled since 2014). If trials succeed, B&K CORP-B could become China’s first PDGF drugmaker. Its pipeline includes other PDGF formats for fresh wounds, pressure sores, and radiation ulcers, plus mRNA/ASO candidates for solid tumors and breast cancer.

However, most programs are early-stage, keeping B&K CORP-B in the "high R&D spend, no revenue, strategic loss" phase typical of 18A biotechs. Despite 2023’s biotech rally, skepticism toward pre-profit firms persists.

Financially, the company reported minimal revenue (HK$472,000 in 2023; HK$261,000 in 2024) from R&D services, alongside net losses of HK$105 million (2023), HK$212 million (2024), and HK$135 million (latest). Unusually high administrative costs (exceeding 50% of total expenses) may raise governance concerns.

Despite pricing at the low end, these headwinds drove B&K CORP-B’s disappointing debut.