A pharmaceutical company, Shanghai United Imaging Healthcare, jumped on the first day of trading. According to reports, the company which is the latest of the slew of $1 billion-plus listings in China this year, jumped as much as 75 percent to 192.48 yuan.
Reportedly, the scrip was sold at 109.88 yuan apiece in an initial public offering that raised 11 billion yuan ($1.6 billion). Moreover, the company that primarily focuses on medical imaging systems, is the seventh Chinese listing this year with an offering that was larger than $1 billion.
Although high inflation and rising interest rates decrease prospects for equities sales, big IPOs remain active in China, in contrast to a slowdown in traditional venues from New York to London and Hong Kong, as per reports.
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According to a report by news agency Reuters, the Chinese producer of CT scan and X-ray devices raised 10.99 billion yuan in an IPO this month that was more than 3,500 times oversubscribed among retail investors. United Imaging, which competes with GE Healthcare, Siemens Healthcare and Philips Healthcare, benefited from COVID-19 outbreaks in China, which boosted demand for scanning and imaging devices.
The company sold 100 million shares at 109.88 yuan apiece. Proceeds will be used to fund research & development, production and marketing, the report added.
The firm plans to invest in a medical equipment fund, research and development projects, its sales network, as well as replenishing capital.
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According to another report by Reuters, there was a spike in listing applications from Chinese companies in June which nearly doubled China’s IPO candidates to almost 1,000 – the highest in at least three years, potentially making the country a bright spot for bankers as equity offerings slow in other markets.
(With inputs from Reuters)
