FAST NEWS: MicroPort MedBot places shares at significant discount
The Latest: Shanghai MicroPort MedBot (Group) Co. Ltd. (2252.HK) on Thursday announced it placed 12.9 million new shares at a price of HK$9.10 per share, raising approximately HK$117 million ($15 million). The sale price represented a discount of 14.63% to yesterday’s closing price of HK$10.66.
Looking Up: The funds raised from the share placement will primarily be used for overseas product registration approvals, potential improvements in R&D, domestic and international commercialization efforts, as well as ongoing optimization, improvements, and product upgrades.
Take Note: Upon completion of the placement, majority shareholder Shanghai Latent Artificial Intelligence’s stake will decrease from 50.47% to 49.8%, thereby reducing its influence on the company.
Digging Deeper: Established in 2015, MicroPort MedBot primarily engaged in the R&D, manufacturing and sales of surgical robots. It went public on the Hong Kong Stock Exchange in 2021 but has yet to turn a profit since its inception. Factors like high costs, lack of qualified doctors and special license policies are all limiting surgical robot use in China, even as competition in the field heats up. The MedBot brand is up against imported products such as the sophisticated Da Vinci robot from the U.S., as well as a host of newly approved devices from other Chinese manufacturers.
Market Reaction: MicroPort MedBot shares fell on Thursday, closing down 16.2% at HK$9.47 by the midday break, hitting a 52-week low.
Translation by A. Au
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