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MicroPort selects banks for IPO of heart valve replacement unit: Bloomberg
Posted on Wednesday, 25 March 2020 10:19
MicroPort Scientific is planning a Hong Kong listing for its Shanghai MicroPort CardioFlow Medtech business, which could take place as soon as this year, people familiar with the matter told Bloomberg.

According to the sources, the group has selected Citigroup and JPMorgan to work on the planned stock market flotation of the heart valve replacement arm.

An initial public offering (IPO) could raise between USD 200.00 million to USD 300.00 million and value the unit at USD 1.00 billion, the insiders observed, asking not to be named as the situation is till private.

Earlier this year, MicroPort confirmed it was considering a possible spinoff of CardioFlow and a first time share sale could come after Chinese biotech firm Innocare Pharma raised USD 288.00 million in its Hong Kong debut despite the worst stock market rout in over 30 years.

Founded in 2015, CardioFlow aims to provide therapies for structural heart diseases, being focused on transcatheter aortic valve replacement surgery.

Deliberations are ongoing and there is no guarantee they will lead to an IPO, or to the size or timing of a planned flotation, the sources said.

MicroPort posted revenue of USD 392.61 million in the six months ended 30th June 2019, up 26.7 per cent from USD 309.87 million in the corresponding period of 2018.

Profit for the period rose 151.4 per cent to USD 60.85 million in H1 2019 (H1 2018: USD 24.20 million).

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 53 IPOs of Chinese companies announced in 2020 to date.

In the largest of these, Zhejiang Water Conservancy Hydropower Investment Group raised CNY 1.91 billion (USD 270.06 million) on the Shanghai Stock Exchange.

Beijing Huafeng Test And Control Technology, InfoVision Optoelectronics (Kunshan) and Shanghai HolyStar Information Technology, among others, have also been targeted in the year so far.

© Zephus Ltd