Shares of Jiangsu Hengrui Pharmaceuticals Co. (01276.HK), China's largest drugmaker by market value, skyrocketed 36.32% in their Hong Kong stock market debut on Friday. The stellar performance came after the company raised HK$9.9 billion (US$1.3 billion) in a highly anticipated initial public offering (IPO).

The strong debut was fueled by overwhelming investor demand. Hengrui's Hong Kong public offering was oversubscribed by an impressive 454.85 times, while the international offering saw 17.09 times oversubscription. The company priced its shares at HK$44.05, the top end of the marketed range, and opened trading at HK$57 before climbing to HK$60, reflecting robust investor confidence in the pharmaceutical giant.

Founded in 1970, Hengrui Pharmaceuticals has evolved from a small factory producing pharmaceutical ingredients to a leader in China's rapidly emerging biotech sector. The company plans to use the IPO proceeds to expand its research into treatments for cancer, cardiometabolic diseases, and neurological disorders. With a dozen international development deals and a landmark pact valued at up to US$6 billion for experimental obesity drugs, Hengrui is positioning itself for growth both domestically and globally, although it has yet to win approval for its branded drugs outside of China.