FAST NEWS: C-Mer Eye Care Soars After Prominent Investor Buys In
The latest: C-Mer Eye Care Holdings Ltd. (3309.HK) announced on Friday it will issue about 30 million new shares to strategic investor Kung Hung Ka for HK$3.87 per share, raising approximately HK$116 million ($14.9 million).
Looking up: Kung is a is a highly regarded angel investor and entrepreneur with substantial experience in China’s healthcare industry, and is the chairman of Vcanbio Cell & Gene Engineering Corp. (600645.SH). C-Mer believes the partnership will help accelerate its expansion in South China’s Greater Bay Area, as well as assist in its development of related medical devices and treatments.
Take Note: The new shares, representing 2.37% of the company’s enlarged share capital, will dilute the shareholding of founder and Chairman Dennis Lam upon completion of the issue.
Digging Deeper: Founded in 2012 by renowned Hong Kong ophthalmologist Dennis Lam, C-Mer Eye Care is a leading eye care chain in China’s Greater Bay Area centered on the Pearl Delta in Guangdong province. The company listed in Hong Kong in 2018 and had eight eye hospitals and two eye clinics on the Chinese mainland at the end of June. In recent years, it has expanded its business to include dental, plastic surgery, medical aesthetics, family medicine and oncology services. Lam has recently increased his holdings in the company to 55.82% by purchasing a combined 7.18 million shares on 23 occasions since Sept. 26.
Market Reaction: C-Mer opened 4.4% higher on Monday and continued to rise, closing up 16.7% at HK$4.75 by the midday break. It now trades at the lower end of its 52-week range.
Translation by Jony Ho
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