BRIEF: MicroPort MedBot raises $35 million in share placement at 20% discount

Surgical robot developer Shanghai MicroPort MedBot (Group) Co. Ltd. (2252.HK) on Tuesday announced it placed 34.7 million new shares, or about 3.45% of its enlarged share capital, at a price of HK$7.85 per share, raising approximately HK$272 million ($34.9 million). The price represented a discount of about 20% to Monday’s closing price of HK$9.81.

The company said it intends to use 70% of the approximately HK$266 million in net proceeds to develop its core business, including R&D to enhance and upgrade its products, as well as for commercialization of its products overseas. It will use the remaining 30% for supplementary working capital and general corporate purposes.

This marks the company’s second share placement this year. In June, it raised HK$117 million through a placement at a nearly 15% discount.

MicroPort MedBot’s stock opened 3.5% lower at HK$9.47 on Tuesday, closing down 13.7% at HK$8.47 by the midday break.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here