How three MIT scientists and Tencent’s backing created Hong Kong’s new investor darling
- QuantumPharm’s IPO has been portrayed as a prime example of the city’s major role in supporting China’s technology drive
A loss-making firm that applies artificial intelligence (AI) to drug research has become a new darling for both old-money and new-money investors in Hong Kong, drawn by the impressive credentials of its three founders, who trained at the Massachusetts Institute of Technology (MIT), as well as the endorsement of Tencent Holdings’ billionaire founder Pony Ma Huateng.
The Hong Kong stock exchange introduced Chapter 18C a year ago to allow promising start-ups worth at least HK$10 billion to sell shares even before they have made any revenue, as part of the government’s efforts to transform the city into a hi-tech hub.
The IPO of Quantum Pharm, known also as XtalPi, has been portrayed as a showcase of Hong Kong’s major role in supporting China’s “hard technology” drive.
Hong Kong finance chief Paul Chan Mo-po delivered a congratulatory message on the day of the firm’s trading debut, saying that the city’s advantage as an international financial centre enables it to facilitate technological innovation, a key element in the “new quality productive forces” that President Xi Jinping sees as key to China’s development.
QuantumPharm’s cornerstone investors include real estate mogul Peter Lee Ka-kit, chairman of Henderson Land Group, as well as MIT chemistry professor Bradley Pentelute, according to the underwriters.
