Comprehensive M&A data with integrated detailed company information
AK Medical is set on Hong Kong debut
Posted on Thursday, 07 December 2017 15:18
At up to HKD 500.00 million (USD 63.99 million), Zephyr, the M&A database published by Bureau van Dijk, shows the upcoming listing by AK Medical is certainly not one of the largest on the bourse this year.
Regardless, the initial public offering will still be among the top 15 by value, albeit at the bottom end, just behind a first-time share sale by China New Higher Education and ahead of Luzhou Xinglu Water.
The Cayman Islands-incorporated orthopaedic implant designer is selling 250.00 million stocks to fund the upgrade of existing production facilities and construct new ones, and bankroll research and development.
At HKD 1.66 to HKD 2.00 apiece, the price range gives a market capitalisation on completion of between HKD 1.66 billion and HKD 2.00 billion.
It also values unaudited pro forma adjusted net tangible assets at HKD 0.72 to HKD 0.80 per share.
China’s fast-growing healthcare industry presents significant opportunities for growth; the prospectus shows total expenditure rose by a compound annual growth rate of 13.9 per cent between 2011 and 2015.
AK claims to be the first and only medical device company that has successfully made money from the application of 3D-printing technology in orthopaedic joint and spine replacement implants in the country.
The IPO would open up the group’s shareholder base to investors keen to gain exposure to a market billed as the second-largest out of the three segments that make up China’s general orthopaedic implant sector in 2016.
AK claimed a 14.3 per cent share of this domestic orthopaedic joint implant category in terms of sales volume, and 6.0 per cent by revenue, last year.
It cannot hurt that the manufacturer also has a growing network comprising 650 distributors covering 3,000 hospitals in China.
While AK’s production facilities are in Beijing, growth has prompted the company to look into expanding capacity by adding another site at Changzhou, Jiangsu Province.
© Zephus Ltd