MicroPort Scientific Prepares for Subsidiary's $300 Million Hong Kong IPO

A popular time to seek a listing in Hong Kong, the medical device maker reached an all-time high of HK$20.40 per share in March.

Author: Anthony Russo   

MicroPort Scientific Corp. (HKEX: 0853; OTC: MCRPF) has reportedly selected underwriters to arrange an IPO in Hong Kong for its unit that provides therapies for structural heart diseases.

The medical device maker has picked Citigroup Inc. and JPMorgan Chase & Co. to help arrange a listing for Shanghai MicroPort CardioFlow Medtech Co., Ltd. which could raise around $200 to $300 million, as Bloomberg reported after the markets closed in Hong Kong. That would give the business a valuation of $1 billion. 

The move follows MicroPort's announcement in January that said it would consider a spinoff for its subsidiary in January. 

To help treat heart diseases, MicroPort CardioFlow surrounds itself with R&D, manufacturing, marketing, and technical consulting capacities. According to MicroPort CardioFlow, its Aortic Valve and Delivery System, known as VitaFlow, received approval for commercialization from the National Medical Products Administration. 

Its parent MicroPort has been in business for more than 20 years and has a global presence with more than 300 devices and technologies. In the six months through June, MicroPort's revenues reached $392.6 million, up 27% year-over-year on a net profit of $60.8 million.

In Hong Kong, MicroPort soared 10% to HK$17.66 per share on Tuesday. In the past month, it had a successful run in Hong Kong, as MicroPort reached an all-time high of HK$20.40 per share. The company has been publicly traded in Hong Kong since September 2010.

Hong Kong has recently eased its listing rules, making the city a popular IPO destination. The latest to complete an IPO was InnoCare Pharma Ltd., (HKEX: 9969) which entered the public markets via virtual listing due to the coronavirus. 

Other companies have expressed interest of an IPO in Hong Kong in 2020, including giants such as fast-food chain operator Yum China Holdings Inc. (NYSE: YUMC), search engine Baidu Inc.(Nasdaq: BIDU), and online retailer JD.com Inc.(Nasdaq: JD)

MicroPort CardioFlow could begin trading in Hong Kong this year.