SHANGHAI (Reuters) – Shanghai United Imaging Healthcare Co will start public trading next Monday, the company said, after raising roughly $1.6 billion in the biggest initial public offering (IPO) on Shanghai’s tech-focused STAR Market so far this year.
The Chinese producer of CT scan and X-ray devices raised 10.99 billion yuan ($1.62 billion) in an IPO this month that was more than 3,500 times oversubscribed among retail investors.
With the offering priced at 78 times earnings – more than double the industry’s average multiple of 35 – United Imaging’s listing will test appetite of a market clouded by gloomy growth prospects in the world’s second biggest economy.
Hundreds of companies are lining up to list on Chinese bourses, as Beijing encourages share and bond sales to support an economy struggling amid COVID-19 outbreaks and property woes.
United Imaging, which competes with GE Healthcare, Siemens Healthcare and Philips Healthcare, benefited from coronavirus outbreaks in China, which boosted demand for scanning and imaging devices.
The company sold 100 million shares at 109.88 yuan apiece. Proceeds will be used to fund research & development, production and marketing.
The IPO exceeded Jinko Solar Co’s 10-billion-yuan share sale to become this year’s biggest on the STAR Market.
China’s IPO market was the world’s biggest by fundraising in the first half.
($1 = 6.7833 Chinese yuan renminbi)
(Reporting by Samuel Shen and Brenda Goh; Editing by Emelia Sithole-Matarise)
