Â
>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Â
Â
United Imaging Healthcare Co’s shares jumped as much as 75% in their Shanghai debut on Monday after its $1.6 billion IPO, the biggest on China’s tech-focused STAR Market so far this year.
Shares in the company, the biggest domestic player in the field of diagnostic imaging devices, opened 55% up at 170.1 yuan and at the midday trading break the shares were up 66% at 182.6 yuan.
United Imaging sold 100 million shares at 109.88 yuan apiece, raising 10.99 billion yuan ($1.62 billion) this month, after the offer was oversubscribed more than 3,500 times among retail investors. The stock was priced at 78 times earnings in the sale, more than double the industry’s average multiple of 35. It will trade with no price limit in the first five sessions, while fluctuations will be capped within a range of 20% thereafter.
Proceeds from the offering, China’s third-largest IPO so far this year, will be used to fund research and development, production and marketing, it said in the IPO prospectus. CITIC Securities and China International Capital Corporation (CICC) were joint sponsors for the IPO. Haitong Securities acted as the joint underwriter.
The medical technology company, which competes with healthcare divisions of General Electric Co, Siemens AG and Philips NV, has seen demand for its scanning and imaging devices benefit from coronavirus outbreaks in China.
