Hong Kong watchdog investigates Cloudbreak Pharma for ‘rigged’ IPO, suspends its shares

“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 IPO’s retail portion was oversubscribed by 77 times, attracting 29,007 retail investors. Its international offering tranche, however, was not popular, with only 168 investors subscribing to an amount equal to 89 per cent of its offering, according to the company’s announcement at the time of the listing.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.