IPO Pricing | RheoMed Biotech-B receives 6.35x subscription, priced at HKD 6.24 per share

Futu Insights news on July 7, this Thursday$RAINMED-B (02297.HK)$Announced the issuance of 23.348 million shares at a price of HKD 6.24 per share, with each lot containing 1,000 shares, and is expected to be listed on July 8.

During the public offering stage, Runmaid-B received 6.35 times subscription. The final number of shares allocated to the public offering was 2.336 million shares, accounting for approximately 10% of the total offering shares (before any over-allotment option is exercised). A total of 4,032 valid applications were received, with a one-lot winning rate of 20.01%.

In addition, the international offering has been oversubscribed. The final number of offering shares was 21.012 million shares, equivalent to approximately 90% of the total offering shares (before any over-allotment option is exercised). Futu Information compiled the relevant data as shown in the table below:

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

Runmaid-B is one of the first companies in China to commercially launch a coronary angiography-based FFR system. Its caFFR system has become the leading domestic FFR measurement product, 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 world's only minimally invasive IMR measurement product that has completed confirmatory clinical trials and is expected to become the world’s first commercially approved minimally invasive IMR system.

The company aims to use the caFFR system and caIMR system as core diagnostic modules to produce industry-leading vascular interventional surgical robots. This is a one-stop hybrid procedure that automates the entire percutaneous coronary intervention (PCI) process by connecting and integrating all clinical application areas for diagnosis and treatment.

In terms of financial status, the company's revenue for the fiscal years 2020-2021 was RMB 6.097 million and RMB 81.199 million, respectively, representing a year-on-year increase of 1,231.8%. Net losses during the same period were RMB 145 million and RMB 634 million, respectively.

In the industry, the prevalence of cardiovascular diseases has remained high and risen rapidly both globally and in China in recent years. Among them, coronary artery disease (CAD) is the most common cardiovascular disease. Currently, CAD treatments are divided into three main categories: medication therapy, percutaneous coronary intervention (PCI), and coronary artery bypass grafting (CABG), with PCI being considered the mainstream treatment method.

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

81K Views