Shanghai Kinetic Medical, a Chinese medical instrument manufacturer listed on the Shenzhen Stock Exchange (SZSE), plans to raise about 1.10 billion yuan ($155 million) from Temasek and Hillhouse Capital Management through a private placement.
The investment was approved by Kinetic’s Board of Directors, according to a regulatory filing with the board on Wednesday. It will need to be reviewed and cleared at the company’s shareholder meeting and by the country’s securities regulator, China Securities Regulatory Commission (CSRC).
Under the private placement, Kinetic will issue no more than 58.5 million shares to the two strategic investors at a price of 18.73 yuan ($2.64) apiece. Singapore state investor Temasek will subscribe for 37.5 million shares, or 702 million yuan ($99 million), through its affiliate Temasek Fullerton Alpha, while Asia-focused private equity major Hillhouse will purchase 21 million shares, which translates into 393 million yuan ($56 million).
Established in March 2005, Kinetic focuses on the research, development, production and sale of minimally invasive surgical and medical instruments in the fields of orthopedics, cardiovascular, and sports medicine. Its offerings include kyphoplasty balloon catheters, orthopedic implants, drug-eluting coronary stents, and puncture needles, among others.
The company went public in June 2016 after it raised 378 million yuan ($53 million) in an initial public offering (IPO) in Shenzhen. It registered a gross revenue of over 1.22 billion yuan ($172 million) in 2019, up 34.3 per cent from about 931 million yuan ($131 million) in 2018.
Kinetic has “entered into a new phase” of accelerated expansion into the international market as well as heightened efforts in innovative research and development, said the company in the filing. The implementation of Kinetic’s future development strategies will require help from investors with “strategic visions, global perspectives and ample capital.”
The company plans to keep upgrading its existing products, while actively expanding offerings of high-end medical equipment and high-value medical consumables in the minimally invasive surgery and sports medicine industries.
