Chinese Medical Device Supplier Succeeder Seeks $147m In STAR Market IPO

Beijing Succeeder Technology Inc, a supplier of in-vitro diagnosis equipment, is seeking 1.028 billion yuan ($147 million) in its initial public offering on the Nasdaq-style STAR Market of the Shanghai Stock Exchange, per a company filing. 

The supplier, which kicked off its online roadshow on July 22, has offered 20.41 million common shares at 50.35 yuan ($7.2) apiece.

Succeeder will deploy the proceeds to develop its manufacturing base, research centre and marketing network, as well as to fuel working capital needs. 

Chinese cross-border investment bank China International Capital Corporation Limited is serving as the principal underwriter for the deal. Succeeder will float the shares under the symbol “688338”.

Succeeder, founded in 2003, manufactures and distributes IVD medical devices for thrombosis and hemostasis. Its pipeline of products is used in over 8,000 medical organizations in the country. It is targeting to enter overseas markets such as the Middle East.

Its net profits for the past three years stood at 71.04 million yuan ($10.18 million) in 2019, 56.71 million yuan ($8 million) in 2018 and 29.34 million yuan ($4.20 million) in 2017. As of 2019, the company has 427 million yuan ($61 million) in assets under management. 

Succeeder’s CEO will remain the controlling shareholder in the company with a combined 37.44 per cent stake, down by 12.48 per cent. Jundu Investment’s unit Ningbo Jundu and Lyfe Capital will hold 4.17 per cent and 2.78 per cent stake respectively. 

Previously, in January 2019, Jundu made an undisclosed equity investment in Succeeder. Subsequently, Jundu along with Lyfe had invested in the company in April 2019.