Aesthetic Medical Services Seeks to Raise $80 Million in U.S. IPO

The Chinese plastic surgery company has applied to list on the Nasdaq under the symbol "AIH," seeking to raise up to $80 million on Wall Street.

Author: Anthony Russo   

Aesthetic Medical International Holdings Group Ltd. has applied to raise $80 million in an initial public offering in the United States.

The Chinese medical service provider expects to list on the Nasdaq Global Select Market and under the symbol "AIH," according to its preliminary prospectus filed with the U.S Security and Exchange Commission on Monday.

Formally known as Pengai Hospital Management Corp., the company changed its name in July 2018. Aesthetic Medical has operated in the industry for more than 20 years and owns 19 treatment centers across 15 cities in mainland China, Hong Kong and Singapore, it said in its prospectus. As of June, Aesthetic Medical had 567 staff, 203 of them doctors, the company reported.

Aesthetic Medical said it plans on using 5% of the proceeds from the IPO to finance facility upgrades at its aesthetic medical treatment centers, 15% for the redemption of its convertible note, 15% to finance new treatment centers and 60% for strategic purchases of aesthetic medical treatment centers. The remaining 5% will be used to boost its workforce and for general corporate purposes, Aesthetic Medical said in the filing.

The aesthetic medical services market in China is the second-largest globally in terms of the volume of aesthetic medical procedures, as well as in terms of revenue from medical procedures in 2017, the company said in the filling. Citing a report by Frost & Sullivan, Aesthetic Medical said the volume of aesthetic medical procedures in China was 20.2 million in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 25.7% to reach 63.5 million by 2023.

Revenue in the six months through June reached $57.3 million, up 10 percent year-over-year, according to the filling. Net income was $11.7 million, soaring 388% from $2.4 million a year ago.

Aesthetic Medical said that it has entered into an agreement to invest $5 million for a 20% stake in LZP Holding Inc., which operates five plastic surgery centers in California. 

The underwriters on Aesthetic Medical's IPO are Cantor Fitzgerald & Co., Haitong International Securities Company Ltd., Prime Number Capital LLC, Maxim Group LLC, CMB International Capital Ltd. and Zinvest Global Ltd.

According to Bloomberg, Chinese companies have raised $2.8 billion in IPOs this year.