BRIEF: Star Sports Medicine doubles in heavily oversubscribed IPO

Shares of medical device company Star Sports Medicine Co. Ltd. (1609.HK) tripled from their IPO price when trading began on Tuesday, before giving back some of the gains to close up 132% at the midday break.

The company sold 8.42 million shares for HK$98.50 each, raising net proceeds of HK$758 million ($97 million). The public offering for local Hong Kong investors was more than 7,800 times oversubscribed, while the international offering was oversubscribed by 9.4 times.

Star Sports Medicine is China’s fourth-largest provider of sports medicine implants and devices, controlling about 6.5% of the market in 2024. The company’s revenue reached 403 million yuan ($59 million) last year, up 23% year-on-year, while its profit jumped 44% to 137 million yuan.

The company plans to use 30% of the IPO proceeds to expand its production capabilities and efficiency. Another 35% will go to R&D, 25% to commercialization, sales, and marketing, and the remaining 10% to general working capital.

By Lau Chi Hang

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