Rigged Markets and Brewing Trouble for Investors The Hong Kong watchdog's decision to suspend Cloudbreak Pharma's shares has left a sour taste in the mouths of investors who were lured into the US based biotechnology firm's initial public offering (IPO) last June.
The regulator's concerns about an "artificial impression of demand" in Cloudbreak's $78 million listing are a stark reminder that even in the high stakes world of biotech, fair market practices can sometimes take a backseat to profit.
The IPO's retail portion was highly successful, attracting 29,007 retail investors who bought shares despite their seemingly exorbitant price.