IPO Pricing | Baixinan-B was subscribed 1.52 times, priced at HK$21.25 per share

Futu News, December 22, this Wednesday$BIOHEART-B (02185.HK)$An announcement was issued. The company will issue 23.937 million shares, priced at HK$21.25 per share, and 500 shares per lot. It is expected to be listed on December 23.

During the public sale phase, Baixinan was subscribed about 1.52 times, and the final number of shares distributed to the public sale was 2.394 million shares, accounting for 10% of the total number of shares offered (before any over-allotment rights were exercised). A total of 1994 valid applications were received. The first-hand winning rate was 85%, and the second-hand subscription was stable.

Furthermore, the international offering was slightly oversubscribed. The final number of shares offered was 21.543 million shares, equivalent to 90% of the total number of shares offered (before any overallotment rights were exercised). Futu Information collates relevant data in the following table:

The net proceeds of approximately HK$442 million will be used for the following purposes: approximately 62% will be used to fund ongoing confirmatory clinical trials, preparation for registration and commercialization of the company's core product Bioheart®; approximately 21.3% to fund ongoing randomized controlled clinical trials in China and the ongoing development of the second-generation Iberis® product for renal nerve blocking; and approximately 6.7% will be used for R&D, ongoing preclinical studies and planned clinical trials of other products under development in the pipeline, including Bio-Leap™, Bioheart Ultra™, Bioheart® balloon dilatation catheter, Bioheart® hyperbaric balloon dilatation catheter, and Bioheart® pulse balloon dilatation catheter; approximately 10% are for general corporate and working capital purposes.

Established in 2014, Baixinan is a leading innovative interventional cardiovascular device company in China. It focuses on fully degradable stents (BRS) and renal nerve block (RDN) treatments to address the unmet medical needs of Chinese patients in coronary and peripheral artery disease and hypertension.

As of the last practical date, the company has a core product and eight other pipeline products under development. The core product, BioHeart, is a self-developed BRS system used for percutaneous coronary intervention, and according to Frost & Sullivan's data, it is expected to become the world's first second-generation fully degradable stent system approved by regulation based on the results of multi-center randomized controlled clinical trials.

In terms of financial status, the company currently has no products approved for commercial sale, and did not generate any revenue from product sales during the track record period. From 2019 to 2020, the company's R&D expenses were RMB 21.53 million and RMB 245 million, while R&D expenses for the first six months of 2020 and 2021 were RMB 12.124 million and RMB 120 million, respectively. Net losses for the same period were 237.19 million yuan, 340 million yuan, 136.45 million yuan, and 228 million yuan, respectively.

On the industry side, in the percutaneous coronary intervention device market in China, the growth trend of fully degradable stent products is more prominent. The market size is expected to grow from RMB 200 million in 2019 to RMB 6.6 billion in 2030, with a compound annual growth rate of 38.5%.

In 2019, the market size of fully degradable stent products in China accounted for about 2.6% of the total market size of stents used in percutaneous coronary intervention in China; this figure is expected to increase to about 77.2% by 2030.

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