Qiming-backed Sanyou seeks to raise $152m in STAR Market IPO

Photo by Anne Nygård on Unsplash

Qiming Venture Partners-backed innovative orthopedics implants company is targeting to raise a total of 1.08 billion yuan ($152 million) in its initial public offering (IPO) on China’s Nasdaq-like STAR Market. 

Sanyou will offer 51.33 million common shares at 20.96 yuan ($2.95) apiece. The company has sold 6.8 million shares ahead of its IPO, according to a company filing with the bourse on Monday. 

Shanghai-based investment bank Citi Orient Securities is the lead underwriter of the deal and Hua Chuang Securities served as the joint underwriter. Sanyou will float the shares under the symbol “688085”.

Sanyou, set up in 2005, specialises in the designing and manufacturing of spinal and trauma implants.

The company derives its revenue primarily from spinal products that contributed to 73.63 per cent of the earnings in 2019. 

As of December 2019, Sanyou generated 354 million yuan ($49 million) in annual revenue and 98 million yuan ($14 million) in net profit, according to its prospectus. 

Chinese global venture capital firm Qiming Venture Partners had led $10 million Series A round funding in Sanyou back in 2014. Currently, Qiming Venture Partners III, LP-owned QM5 Limited is the controlling shareholder in Sanyou owning a 24.65 per cent stake. 

Following the IPO, QM5 Limited will remain the largest shareholder in Sanyou holding up to 27.11 per cent. Three individual investors will remain as the actual controllers with a combined stake of 45.13 per cent stake. The investors are Nong Xu (19.15%), Michael Mingyan Liu (15.87%) and Davide Fan (10.11%).

The company will use the IPO proceeds to spruce up its orthopedics implants research centre and meet working capital and marketing expenditure needs.

Aside from Qiming, Sanyou had also raised capital from life sciences venture capital firm TF Capital in 2014 and state-backed asset management company Yingke PE in 2017. 

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.

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.