New stock offering | Runmaide-B starts offering today, expected to be listed on July 8th.

Futu news on June 27th, Monday$RAINMED-B (02297.HK)$announced that it will conduct a public offering from June 27th to June 30th. The company plans to issue 23.348 million shares, including 2.336 million shares available for public sale and 21.012 million shares for international sale, with an issuance price of 4.28-6.24 Hong Kong dollars per share, 1000 shares per board lot, and is expected to be listed on July 8th.

The prospectus shows that Runmed-B is a Chinese medical instruments company established in 2014. Its core products caFFR system and caIMR system are mainly used to assess the severity of myocardial ischemia caused by coronary artery stenosis and microvascular functional disorders.

Runmed-B is one of the first companies in China to commercialize FFR systems based on coronary angiography. Its caFFR system has become a leading FFR measurement product domestically, with an accuracy rate of 95.7%, the highest among domestic FFR measurement products.

The company is currently developing its caIMR system, which is the only minimally invasive IMR measurement product in the world that has completed confirmatory clinical trials and is expected to become the world's first minimally invasive IMR system to be approved for commercialization.

The company's goal is to leverage the caFFR system and caIMR system as core diagnostic modules to produce leading vascular intervention surgical robots in the industry. This is an all-in-one mixed program that automates the entire process of percutaneous coronary intervention (PCI) by connecting and integrating all clinical application areas for diagnosis and treatment.

In terms of financial condition, the company's revenue for the 2020-2021 fiscal years was 6.097 million yuan and 81.199 million yuan, with a year-on-year growth of 1231.8%. The net losses for the same period were 0.145 billion yuan and 634 million yuan respectively.

In the industry, the incidence of cardiovascular diseases has been high and rapidly increasing globally and in China in recent years. Coronary artery disease (CAD) is the most common cardiovascular disease. Currently, CAD treatment is divided into three major categories, including drug therapy, percutaneous coronary intervention (PCI), and coronary artery bypass grafting (CABG), with PCI considered the mainstream treatment method.

Coronary angiography (CAG) mainly provides diagnostic testing and guidance to CAD patients, considered the gold standard for diagnosing and guiding PCI. It is estimated that the Chinese CAG-FFR measurement market will increase from around 78.6 million yuan in 2020 to approximately 2,385.7 million yuan in 2025, with a compound annual growth rate of 97.9%.

The company intends to use the net proceeds from the global offering for the following purposes: 80% for the research and commercialization of its core products - caFFR system and caIMR system; 16.5% for the continuous research and production of other pipeline products; and 3.5% for general operational funds.

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