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Shares of BrainAurora Medical Technology, a provider of medical diagnostics and digital therapies, jumped as much as 8.4 per cent in their Hong Kong market debut after completing the city's first initial public offering (IPO) of the year.

The stock, which trades under the 6681 code, opened unchanged at HK$3.22 and ended 3.4 per cent higher at HK$3.33 when market closed at 4pm local time, valuing the entire company at HK$4.22 billion (US$542 million). It earlier surged as much 8.4 per cent to HK$3.49.

The broader market weakened , with the Hang Seng Index sliding 0.9 per cent to a six-week low amid heightened geopolitical tensions and waning bets on US interest-rate cuts.

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The company's IPO attracted bids amounting to 11.4 times the number shares allocated to retail investors, who were betting on the booming themes of healthcare and technology. It was listed under the Hong Kong Exchanges and Clearing's listing rule called Chapter 18A, which allows unprofitable biotech companies to raise funds from the public.

"This listing marks our entry into the fast lane of the international capital market as we became a new member of Hong Kong's [chapter] 18A," said chairman Tan Zheng, who struck the ceremonial gong at the stock exchange at 9.30am. More than 60 companies have listed under Chapter 18A since its launch in 2018.

Hong Kong is looking to regain its crown as the world's top IPO venue after an improved performance last year when IPO proceeds surged 87 per cent to US$11 billion, according to data compiled by the London Stock Exchange Group. The city rose to fifth on the global league table in December from 13th in June.

Last week, PwC forecast that IPO fundraising in Hong Kong would reach HK$160 billion in 2025 to be among the top 3 venues globally, given that interest rate cuts and market reforms are on the horizon.

"With the recent enhancement to the listing rules, companies can list in Hong Kong more efficiently and with greater predictability in the review process," said Diamantina Leong, PwC Hong Kong capital markets services partner. "We believe that more companies will be attracted to list in Hong Kong."

BrainAurora, based in Shaoxing in eastern Zhejiang province, raised HK$583.18 million from its stock offering. Most of the proceeds will be used for research and development and establishing new cognitive centres in hospitals across mainland China.