SINGAPORE (Dow Jones)--Star Pharmaceutical Ltd. (X64.SG), a manufacturer of prescription drugs in China, Wednesday debuted on the Singapore Exchange at a 37% premium to its initial public offering price.

The drug-maker's shares initially traded at 48 Singapore cents compared with the 35 Singapore cents they were sold for in the IPO.

At 0425 GMT, the shares were trading at 44 Singapore cents and 43.6 million had changed hands.

"The IPO stock couldn't have chosen a better day to debut," said John Yap, executive director at UOB Kay Hian.

Wall Street's gains overnight helped create favorable conditions, he said.

"Sentiment around IPO stock reflects market sentiment, especially on the first day," said Yap.

The company raised net proceeds of about S$14.2 million from the sale of 58.5 million shares.

The public component of the offer of 2.9 million shares was 172 times oversubscribed.

The proceeds will help the company strengthen research and development, expand into new business areas, and boost manufacturing capacity, according to the prospectus.

Kim Eng Capital Pte. Ltd. was the manager, underwriter and placement agent for the share offer.