SZ-listed Chinese medical device maker Kinetic to raise $155m from Temasek, Hillhouse

Medical equipment in an operating theatre

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.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.