Bloomage Biotechnology, a Shandong-based producer of hyaluronic acid products, edged up 4 percent on its trading debut despite a tepid initial public offering (IPO) market in Hong Kong.

Shares in the company surged as high as HK$1.16 in the morning trading session, 16 percent higher than its offering price of HK$1 per share, but lost some gains to close at HK$1.04.

Bloomage Biotechnology is the first successful Hong Kong IPO in more than a month after the China South Locomotive's listing on Aug 21.

Chairman Zhao Yan told reporters after the listing ceremony that she was happy with the shares performance amid the uncertainties in the financial market.

Carmen Wong, Phillip Securities' corporate finance officer, said she was quite surprised that the shares had closed above its offering price. "The fundraising size is small and that may be easier for speculation," she said.

The company raised HK$78 million at an offering price of HK$1 per share, and its shares earmarked for investors were 3.1 times oversubscribed.

Wong said the IPO market remains tepid despite the better-than-expected performance of Bloomage. "We can see lukewarm response to Renhe's margin financing," she added.

However, the surprising first day performance of Bloomage will not be able to cheer the IPO market, Wong said.

Renhe, a mainland operator and developer of standalone underground shopping centers, issued 3 billion shares at between HK$1.40 and HK$1.71, raising HK$4.2 billion to HK$5.13 billion. Its retail subscription kicked off on Tuesday.

Wong said the stock market sentiment is so poor that the IPOs received lukewarm response. "So far we haven't received any orders from retail investors for Renhe shares through margin," she said, adding that investors probably are not familiar with the business model of Renhe.