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Full Version: Heart valve replacement maker Venus Medtech plans to raise up to US$381 million
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Chinese heart valve replacement maker Venus Medtech plans to raise up to US$381 million in Hong Kong IPO
* Hangzhou-based company expects to price its offering in a range of HK$29 to HK$33 a share
* IPO latest sign of confidence returning to Hong Kong’s financial markets

Chad Bray  
Published: 4:20pm, 26 Nov, 2019

Venus Medtech (Hangzhou), a Chinese maker of heart valve replacement devices, plans to raise as much as US$381 million in an initial public offering in Hong Kong next month, the latest sign that confidence is returning to the city’s financial market.

The Hangzhou-based company filed paperwork with the Hong Kong stock exchange late on Monday to proceed with its offering and began its roadshow to investors on Tuesday.

The company expects to price its offering of 78.5 million shares in a range of HK$29 to HK$33 a share. If an overallotment of shares is fully exercised, the company would raise US$381 million.
The Venus Medtech offering has five cornerstone investors, including Asia-focused private-equity firm Hillhouse Capital and Singapore sovereign wealth fund GIC.

The IPO is expected to price on December 4 and begin trading on December 10.

Venus Medtech manufactures devices for transcatheter aortic valve replacements, holding a 79.3 per cent market share for device implants in China last year. It reported a loss of 138.2 million yuan (US$19.7 million) in the first five months of 2019, compared with a loss of 50.2 million yuan in the same period a year earlier.

The company plans to use the IPO proceeds to commercialise its VenusA-Valve product, as well as for research and development and general corporate purposes. The VenusA-Valve is the first transcatheter aortic valve replacement (TAVR) device approved by China’s National Medical Products Administration and commercialised in the mainland, according to the company.

Goldman Sachs, CICC, Credit Suisse and CMS are acting as joint sponsors on the IPO.

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