Lung Fung Group (HKEX: 02290) made its market debut today, with its stock opening significantly lower in early trading.

The company's shares were priced at HK$5.18 each for its initial public offering, which involved the issuance of 125 million shares. The offering size was set at 500 shares per board lot, and the net proceeds from the listing are estimated to be approximately HK$600 million.

In the initial trading session, the stock fell 16.6% to HK$4.32, with a trading turnover reaching around HK$145 million.

As detailed in its prospectus, Lung Fung Group is a leading Hong Kong-based retailer operating a chain of stores selling cosmetics, health products, and pharmaceuticals. The company aims to offer customers a wide range of value-for-money products through its 31 physical retail stores under the "Lung Fung" brand in Hong Kong, as well as through various online sales platforms.

According to market research, the company held the position of the third-largest retailer in Hong Kong's cosmetics, health, and pharmaceutical market by retail sales for the 2025 fiscal year, capturing a market share of 5.8%. Furthermore, it was the largest pharmaceutical retailer in Hong Kong by retail sales, with a 5.2% market share. By revenue, it also ranked as the third-largest retailer of pharmaceuticals and health products in the region, holding an approximate 4.2% market share.