IPO News | MicroPort Brain Science begins its offering today, with an expected listing on July 15

Futu Information report dated June 29, this Wednesday$MICROPORT NEURO (02172.HK)$Announced that the offering will take place from June 29 to July 8. The company plans to issue 13.7 million shares, including 1.37 million shares for public offering and 12.33 million shares for international offering. The issue price is HKD 24.64 per share, with a minimum lot size of 1,000 shares, and it is expected to be listed on July 15.

The company is a Chinese firm in the neuro-interventional medical device industry, committed to providing innovative solutions to doctors and patients. Since the approval of its first product in 2004, as of the latest practicable date, the company has accumulated a portfolio of 30 products, including ten treatment products and three access products approved and commercialized in China, along with 17 candidate products under development.

The company has a comprehensive portfolio of approved therapeutic products covering the three major areas of cerebrovascular diseases: hemorrhagic stroke, cerebral arteriosclerosis stenosis, and acute ischemic stroke. According to Frost & Sullivan, in terms of revenue in 2020, the company is the only Chinese entity among the top five participants in China's neurointerventional medical device market, holding approximately 4% market share.

According to Frost & Sullivan, for hemorrhagic stroke, its product sales represent the largest segment in China's neurointerventional medical device industry. The company has commercialized products in key therapeutic categories, including embolization coils, flow-diverting stents, and covered stents. In addition to receiving approval in China, two flagship embolization coil products, NUMEN and NUMEN FR, have also been approved in the United States, the European Union, and South Korea.

From 2019 to 2021, the company’s revenue was RMB 184 million, RMB 222 million, and RMB 383 million respectively, with a compound annual growth rate of 44.27% over the three years. Net profits were RMB 46.975 million, RMB 45.287 million, and RMB 24.17 million respectively.

In terms of the industry, according to Frost & Sullivan, in 2020, China had 800,000 patients with hemorrhagic stroke, 500,000 patients with transient ischemic attack (a common symptom of cerebral arteriosclerosis stenosis), and 1.7 million patients with acute ischemic stroke.

In China, the penetration rate of neurointerventional procedures (in the areas of hemorrhagic stroke, cerebral arteriosclerosis stenosis, and acute ischemic stroke) remains relatively low, with penetration rates in these three areas being 9.1%, 1.0%, and 2.7% respectively in 2020, indicating significant growth potential.

According to Frost & Sullivan, the size of China's neurointerventional medical device industry is expected to grow from RMB 5.8 billion in 2020 to RMB 17.5 billion in 2026, representing a compound annual growth rate of 20.1%.

The company intends to use the net proceeds from the global offering for the following purposes: approximately 30.0% will be used for research and development of treatments and access products for hemorrhagic stroke, cerebral arteriosclerosis stenosis, and acute ischemic stroke; about 20.0% will be allocated for the commercialization of products addressing hemorrhagic stroke, cerebral arteriosclerosis stenosis, and acute ischemic stroke; around 15.0% will go towards expanding manufacturing facilities to increase production capacity; roughly 20.0% will be used to expand global influence; about 10.0% will be utilized for optimizing the product portfolio through strategic acquisitions, investments, partnerships, or a combination of such strategies; and approximately 5.0% will serve as working capital and for other general corporate purposes.

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