Chinese medical equipment manufacturer Venus Medtech is aiming to raise up to $381 million through an initial public offering (IPO) in Hong Kong next month. The Hangzhou-based firm, which specializes in building heart valve replacement devices is taking advantage of the renewed confidence in Hong Kong's financial market following the success of major IPOs such as Alibaba's secondary listing.
Venus Medtech officially filed its paperwork with Hong Kong Exchanges and Clearing (HKEX) late on Monday. Following the filing, the company plans to immediately proceed with its investor roadshow, which will kick off on Tuesday this week.
During its IPO, Venus Medtech plans to put out 78.5 million shares at a price range of between HK$29 and HK$33 per share. If the company manages to sell all of its listed shares, plus its option to add more shares based on demand, Venus could raise as much as $381 million during its IPO. Joint sponsors for the IPO include Goldman Sachs, Credit Suisse, CMS, and CICC.
According to the company, it plans to use the proceeds of its Hong Kong IPO to commercial its products, particularly its Venus A-Valve device for transcatheter aortic valve replacements (TAVR). The device is the first TAVR approved by the country's National Medical Products Administration.
The remaining funds will be used for general corporate purposes and research and development for its future products. Venus Medtech is currently, the leader in TAVR technology, holding a 79.3 percent market share for the implants in China.
The company's plan to list in Hong Kong comes after major firms have decided to return to the city following renewed confidence in its financial market. Both Budweiser Brewing Company APAC and developer ESR Cayman had previously pulled out of their planned IPOs citing unfavorable market conditions in Hong Kong.
After the city's situation had improved, both companies had decided to push through with their planned listings. Budweiser Brewing Company APAC launched its IPO in September, raising around $5.8 billion. ESR Cayman listed just a month after, raising a total of $1.6 billion.
The major listing that dramatically increased confidence in the city was Chinese e-commerce giant Alibaba Group's secondary listing this month. Alibaba raised around $12.9 billion in its second offering, the largest IPO in the city this year. The revived IPO plans and Alibaba's successful second listing managed to bring Hong Kong back to the top of the list, allowing it to overtake both the NASDAQ and the New York Stock Exchange this year.
