HeartCare-B Launches IPO Subscription Today, Expected to List on HKEX on August 20

Original Title: New Share Offering | HeartCare-B Opens for Subscription Today, Expected to List on August 20 Source: Futu News

IPO Expert: Important Note:

HeartCare will open its IPO subscription from August 10 to 13, planning to issue approximately 6.6019 million shares at an offer price of HKD 160–171 per share. Each lot comprises 50 shares, with a minimum subscription amount of HKD 8,636.16. The company is expected to list on August 20.

HeartCare is an innovative neurointerventional medical device company that holds a leading position in China’s neurointerventional market, leveraging its extensive portfolio of commercialized and pipeline products.

Futu News reported on August 10 that HeartCare announced on Tuesday that its subscription period will run from August 10 to 13. The company plans to issue approximately 6.6019 million shares, comprising 660,200 shares for public offering and approximately 5.9417 million shares for international offering. The offer price is set at HKD 160–171 per share, with a board lot of 50 shares. The company is expected to list on August 20.

HeartCare is an innovative neurointerventional medical device company that holds a leading position in China's neurointerventional market, leveraging a broad portfolio of commercialized and pipeline products. The company's product portfolio encompasses neurointerventional and cardiovascular medical devices.

Currently, HeartCare has four commercially available products and 19 approved and in-development products in China. Its two core products are the Captor™ Thrombectomy Device and the Left Atrial Appendage (LAA) Occluder. The Captor™ is indicated for acute ischemic stroke and has been commercialized in China, while the LAA Occluder is indicated for atrial fibrillation and is currently pending NMPA registration review.

In terms of financial data, the Company began generating revenue following the commercialization of the SupSelek™ microcatheter and ExtraFlex™ distal access catheter in the first quarter of 2020. During the track record period, the Company consistently recorded operating losses. For the years 2019 and 2020, and the first three months of 2021, the Company recorded losses of RMB75.498 million, RMB216.0 million, and RMB41.297 million, respectively.

From an industry perspective, stroke incidence in China is high and remains a leading cause of death. In 2019, China ranked first globally in the number of stroke patients, totaling 14.8 million, including 11.9 million ischemic stroke patients and 2.9 million hemorrhagic stroke patients.

On the other hand, the penetration rate of neurointerventional procedures in China remains relatively low compared to that in developed countries. The penetration rate of thrombectomy in China stood at merely 1.7% in 2019. Driven by the combined favorable factors of technological innovation, supportive government policies, and the continuous growth of per capita disposable income and healthcare expenditure, the penetration rate is projected to increase to 42.9% by 2030.

The market size of China’s neurointerventional medical device market increased from RMB2.9 billion in 2015 to RMB6.0 billion in 2019, at a compound annual growth rate (CAGR) of 20%, and is expected to further increase to RMB48.9 billion by 2030, at a CAGR of 21% from 2019 to 2030.

Regarding cornerstone investors, multiple cornerstone investors have agreed to subscribe for the offer shares available for subscription at the offer price, totaling approximately USD 66 million, including Lake Bleu Prime, Boyu Capital Opportunities Master Fund, Octagon Investments, Aspex, Sage Partners, Superstring, The Valliance Fund, LYFE CAPITAL, 3W Fund, and GHFFSP.

Regarding the use of proceeds, the net proceeds to the Company are approximately RMB980 million (assuming the over-allotment option is not exercised and calculated based on the mid-point of the offering price). According to the prospectus, the Company intends to apply the net proceeds from the share offering to the following purposes: approximately 45.3% is expected to be allocated to the Company's core products; approximately 39.9% to other products under development in the Company's R&D pipeline; approximately 4.8% to fund the enhancement of R&D capabilities through internal research and the continued expansion of the product portfolio; and approximately 10.0% will be used for working capital and general corporate purposes.

Editor/Aurora