Hong Kong watchdog investigates Cloudbreak Pharma for ‘rigged’ IPO, suspends its shares
Hong Kong’s Securities and Futures Commission (SFC) has directed the stock exchange to suspend trading of US-based biotech firm Cloudbreak Pharma pending an investigation into its US$78 million initial public offering (IPO) last year. “The SFC has serious concerns that Cloudbreak’s initial public offering may have been rigged to create an artificial impression of demand for Cloudbreak’s shares,” the SFC said in a statement on Thursday. The regulator considered the suspension “necessary or...
Regulator cites ‘serious concerns’ about ‘artificial impression of demand’ in US-based company’s US$78 million listing in 2025
“The SFC has serious concerns that Cloudbreak’s initial public offering may have been rigged to create an artificial impression of demand for Cloudbreak’s shares,” the SFC said in a statement on Thursday.
The regulator considered the suspension “necessary or expedient to maintain an orderly and fair market” for the firm’s shares and to “protect the interests of the investing public”, it added.
Cloudbreak, a biotechnology firm focused on treatments for people suffering from eye diseases, raised HK$611.88 million (US$78.45 million) in its IPO in late June 2025.
The company’s share price dropped 39 per cent on the first day of trading, and has lost more than 90 per cent from its IPO price of HK$10.10, closing at HK$1.19 on Wednesday. The shares were suspended at 9am on Thursday, before the market opened.
