Medcaptain plunges in trading debut for heavily oversubscribed IPO
Medical device maker Shenzhen Medcaptain Technology Co. Ltd. (2041.HK) plunged in its Hong Kong trading debut on Monday, opening 35% lower before stabilizing to close at HK$10.10 by the midday break, down 34.5%.
The company sold 38.91 million shares for HK$15.42 each, raising net proceeds of HK$496 million ($63.59million). The retail tranche for local investors was oversubscribed by 435.4 times, while the international placement was oversubscribed by just 1.4 times.
Medcaptain’s revenue rose 15.7% last year to 1.62 billion yuan ($241 million), as the company swung to a profit of 48.89 million yuan for the year. Its revenue increased 19% year-over-year to 420 million yuan in the first quarter of this year, but it swung to a net loss of 3.1 million yuan, reversing a profit of 5.02 million yuan a year earlier.
The company will use 35% of its IPO proceeds for R&D, 20% to develop manufacturing centers to expand its production capacity, 20% to enhance its sales and marketing, 10% for strategic investments and acquisitions, 5% to upgrade its IT infrastructure, and the remaining 10% for general working capital.
By Lau Chi Hang
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