Venus Medtech HangZhou is raising as much as HKD 1.19 billion (USD 153.22 million) via a private placement, just nine months after completing an initial public offering on the Hong Kong bourse worth HKD 2.85 billion.
The mainland China-incorporated bioprosthetic heart valves manufacturer is selling 18.50 million new shares, representing a 4.4 per cent post-issue stake, to no less than six professional, institutional and/or individual investors.
At HKD 64.19 apiece, the price equates to a discount of 2.0 per cent to the close of HKD 65.50 on 2nd September and of 4.8 per cent to the average finish for the last ten days of HKD 67.45.
Venus noted the placing is an “opportunity to raise capital to facilitate the sustainable development of the company and satisfy its requirements for capital in light of the rapid development of the business”.
Money raised will be used to invest in upstream and downstream entities to achieve cost savings, expand its facilities, and support general working capital.
Venus said it operates in a large untapped and fast-growing transcatheter heart valve market in China and globally.
Its products and candidates are designed for transcatheter implantation to replace dysfunctional heart valves mainly associated with aortic stenosis and pulmonic, mitral and tricuspid regurgitation.
Venus recorded revenue of CNY 102.00 million (USD 14.93 million) for the six months ended 30th June 2020, down 5.0 per cent from CNY 106.76 million in H1 2019.
Adjusted net loss narrowed from CNY 100.55 million in H1 2019 to CNY 43.54 million in H1 2020.
Cash and equivalents totalled CNY 1.97 billion, as at 30th June 2020 (31st December 2019: CNY 2.41 billion).
Gearing stood at 0.9 per cent, as of 30th June 2020, down from 4.8 per cent, as at 31st December 2019.
Zephyr, the M&A database published by Bureau van Dijk, shows 148 capital increases targeting the medical equipment and supplies manufacturing category have been announced in 2020 to date.
Venus’ equity dilution is among the top ten by value so far this year: it is ranked seventh, behind Shanghai Kinetic Medical and ahead of Beijing Bohui Innovation.
© Zephus Ltd