By Yifan Wang

The shares of CARsgen Therapeutics Holdings Ltd. and China Youran Dairy Group Ltd. collapsed in their Hong Kong debut on Friday, as Asian markets faced the challenge of sustaining momentum from new stock offerings.

The developer of cancer treatments opened 18% down, while the dairy maker fell 10% at the start of trading. As of noon, company shares were down 9.0% and 18% respectively.

The companies raised a total of HK $ 6.18 billion (US $ 795.9 million) in net proceeds from their initial public offerings, with CARsgen setting its offer price at the top of an expected range. China Youran’s bid price was set at the lower end of its forecast.

The appetite for new listings in Asia has eased since April. Hong Kong has welcomed around eight new listings in the past three months, up from 31 offers in the first three months of the year.

Still, Hong Kong has outperformed other regional exchanges in terms of number of trades and listing sizes so far this year.

Several more multi-million dollar IPOs are planned. Hutchmed (China) Ltd., a medical company owned by conglomerate CK Hutchison Holdings Ltd., announced on Friday that it plans to raise more than US $ 600 million in a Hong Kong listing, becoming the last listed Chinese company. in the United States seeking to attract investors to the Asian financial center. Renowned Chinese tea-based beverage retailer Nayuki Holdings Ltd. on Thursday announced plans to raise up to HK $ 5.09 billion in an offer in Hong Kong.

Write to Yifan Wang at yifan.wang@wsj.com




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