IPO Pricing | MicroPort NeuroScience received 45.27 times subscription, priced at HKD 24.64 per share

Futu News report on July 14, this Thursday$MICROPORT NEURO (02172.HK)$Announcement was made. The company is issuing 13.7 million shares at a price of HKD 24.64 per share, with each lot consisting of 1,000 shares. It is expected to be listed on July 15.

During the public offering phase, MicroPort NeuroScience received 45.27 times subscription. The final number of shares allocated to the public offering amounted to 4.11 million shares, accounting for approximately 30% of the total offering (before any over-allotment option was exercised). A total of 9,320 valid applications were received, with a winning rate of 4.88% for one lot, and subscribing for 25 lots guarantees one winning lot.

In addition, the international offering was oversubscribed, with the final number of shares offered being approximately 9.59 million, representing about 70% of the total number of shares offered (before any exercise of the over-allotment option). Futu Information has compiled the relevant data in the table below:

The company intends to use the net proceeds from the global offering of approximately HKD 278 million for the following purposes: around 30.0% will be used for research and development of hemorrhagic stroke, cerebral atherosclerotic stenosis, and acute ischemic stroke treatment and access products; approximately 20.0% will be used for commercialization of products targeting hemorrhagic stroke, cerebral atherosclerotic stenosis, and acute ischemic stroke; about 15.0% will be allocated for expanding manufacturing facilities to increase production capacity; roughly 20.0% will be used for enhancing global presence; approximately 10.0% will be dedicated to optimizing the product portfolio through strategic acquisitions, investments, partnerships, or a combination of these strategies; and around 5.0% will serve as working capital and for other general corporate purposes.

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 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 company among the top five players in China's neuro-interventional 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%.

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