Sequoia-backed IRay Technology Eyes $318m In STAR Market IPO

iRay Technology Company Limited, a provider of X-ray system components used in medical, dental, veterinary and industrial imaging applications, has kicked off the subscription process of an initial public offering (IPO) on Shanghai’s Nasdaq-style STAR Market, according to a filing on Tuesday.

Backed by Sequoia Capital China, the company is offering up to 18.20 common shares at 119.6 yuan ($17) apiece, with target to raise 2.18 billion yuan ($318 million). Its shares have been oversubscribed 4,695 times.

Shanghai-based Haitong Securities is serving as the principle underwriter for the deal, while state-owned China International Capital Corporation Limited (CICC) is the joint underwriter. iRay will float the shares under the symbol “688301”.

iRay will designate the IPO proceeds to support its manufacturing base, research center, sales and service center, besides sprucing up working capital.

Headquartered in Shanghai, the 9-year-old iRay’s products are exported to over 70 countries across the US and Europe.

Its annual revenues over the past three years stood at 546 million yuan ($80 million) in 2019, 439 million yuan ($64 million) in 2018 and 356 million yuan ($52 million) in 2017, per its prospectus.

The majority shareholders in the company are Chinese healthcare investment firm CD Capital, early-stage investment focused Northern Light Venture Capital, state-owned Shanghai Zhangjiang Huoju Investment and New Alliance Capital.

In 2012, Sequoia Capital China had teamed up with Northern Light Venture Capital to invest 53 million yuan ($7.8 million) in iRay’s Series A round of financing. Subsequently, in 2014, Sequoia, Northern Light, CD Capital and Primavera Capital had collectively pumped in ‘tens of millions of US dollars” in its Series B round of funding.