MicroPort Announces Share Placing at HK$23.5 per Share, Hits Record-High Stock Price

Original Title: Frontline | MicroPort Launches Placement at HK$23.5 Per Share, Stock Price Hits Record High Source: 36Kr

MicroPort (00853.HK) Share Price Bucks the Trend to Hit a New High.

As of press time, the Hang Seng Index fell 0.50%, while MicroPort Medical rose 14.23% to HK$29.3, hitting a record high since its listing, with its latest total market capitalization reaching HK$50.867 billion. Year-to-date, MicroPort Medical’s cumulative gain has exceeded 219%.

In terms of news flow, on June 23, MicroPort announced that it plans to place 65.958 million shares at a price of HK$23.5 per share. The gross proceeds from the placement are approximately HK$1.55 billion, with net proceeds of approximately HK$1.54 billion after deducting related expenses. The placement price represents a discount of approximately 3.49% compared to the previous day’s closing price. The placed shares account for 3.8% of the total issued shares and 3.66% of the total shares outstanding after the completion of the placement.

MicroPort stated that it plans to use the funds raised to repay the group’s bank loans, provide financing for potential future business development and investments, and serve as the group’s general working capital.

In addition, statistics from Futu NiuNiu’s medical equipment sector show that as of press time, 11 companies saw their stock prices rise, 8 remained flat, and only 5 declined. Among them, Yongsheng Medical was up 12.22%, AK Medical up 8.04%, and Venus Medtech (Hangzhou) Inc. -B up 7.70%.

MicroPort was listed on the Main Board of the Hong Kong Stock Exchange in 2010, focusing on niche segments of the medical device market. As of December 31, 2019, MicroPort had eight major business divisions, including cardiovascular interventional products and orthopedic medical devices, producing over 300 medical device products.

MicroPort previously stated that, as of May, its monthly revenue decreased by 20%-25% year-on-year compared to the same period in 2019, which was broadly consistent with the performance of other companies in the industry. MicroPort expects its revenue to continue improving in the second half of the year, with full-year performance basically aligning with that of 2019.

As of June 23, among the nine analysts tracked by Bloomberg, four rated MicroPort as “Buy,” four as “Hold,” and one as “Sell.” The average 12-month target price is $20.66.