China’s MicroTech Medical seeks to raise $254m in Hong Kong IPO

Hangzhou-headquartered diabetes technology firm MicroTech Medical (Hangzhou) Co., Ltd is seeking to raise HK1.98 billion ($254 million) in its initial public offering (IPO) in Hong Kong.

MicroTech, which counts Lilly Asia Ventures (LAV) and Qiming Venture Partners among its investors, targets to sell up to 63.50 million shares at price between HK$27.70 ($3.56) and HK$31.15 ($4) apiece.

MicroTech expects to make the trading debut next week, October 19th.

Its prospectus revealed that MicroTech has secured an aggregate of $153.50 million from a slew of cornerstone investors – including Chinese tech giant Tencent and its subsidiary Tencent Mobility, besides LAV, U.S. investment manager Invesco, UBS AM Singapore, Boyu Capital, Lake Bleu Prime, New York-based healthcare investment fund OrbidMed, among others.

Upon completion of the listing, MicroTech will leverage the new proceeds to spruce up its product R&D, and continuous glucose monitoring system (CGMS), among others.

According to China Insights Consultancy, the market size of diabetes treatment medical devices in the country is expected to increase to $3.6 billion in 2030, representing a compound annual growth rate (CAGR) of 15.1% from 2020 to 2030. In addition, the market size of the sector is expected to grow to $118.5 billion by 2030.

MicroTech, set up in 2011 offers diabetes therapy and manufactures medical devices to improve diabetes management globally. The flagship product – the equal patch insulin pump system (Equil) – reportedly clocked a 3% market share in China last year.

Besides its home country, MicroTech has sold Equil products to over 20 countries like Europe, Asia-Pacific, Middle East, Africa, Latin America. It also expects to receive US Food and Drug Administration clearance for Equil in the first half of 2022.

Late last year, MicroTech garnered 575 million yuan ($89 million) in its Series D round of financing from LAV, Tencent, Qiming, IDG Capital, state-backed China Everbright Group, and other investors.

Its early-stage backers also comprise state-owned China Health Industry Investment Fund and Shanghai Guofang Capital, Hailing Venture and life science-led CD Capital.

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. 
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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.