Shares of medical device maker Cofoe Medical Technology Co. Ltd. (1187.HK; 301087.SZ) opened higher in their Hong Kong trading debut on Wednesday, but later reversed course to close down 5.98% from their offer price at HK$36.98 by the midday break.
The company issued 27 million Hong Kong-listed H-shares in its offering for HK$39.33 per share, raising net proceeds of about HK$1 billion ($128 million). The portion of the offering for local Hong Kong investors was nearly 400 times subscribed, while the international offering was 3.4 times covered.
Cornerstone investors subscribed for approximately 9.65 million shares, accounting for about 35.8% of the offering, including Lens Technology (6613.HK; 300433.SZ) and Panjing Fund.
The company said it will use proceeds from the offering mainly to expand its production capacity, increase its R&D, expand its sales network and for general working capital.
Cofoe manufactures and sells home-use medical devices across more than 200 categories, including rehabilitation, healthcare, monitoring and respiratory products. Its revenue rose 13.6% last year to 3.39 billion yuan ($496 million), while its net profit increased 18.6% to 370 million yuan.
By Lee Shih Ta
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