Taimei Medical Technology (02576.HK) commenced trading on the Hong Kong Stock Exchange at 9:00 AM on October 8, 2023, with Morgan Stanley and CICC serving as joint sponsors.

Medical Technology (02576.HK)

According to the announcement, the pharmaceutical SaaS service provider Taimei Medical Technology set its share price at HKD 13, which is the upper limit of the stipulated price range of HKD 10 to HKD 13. The company issued a total of 25,779,000 H shares in the public offering segment in Hong Kong, allocating 12,889,600 shares to the public; consequently, this allocation was oversubscribed by 156.33 times. This oversubscription triggered the overallotment mechanism, which in turn increased the allocation in the international offering. Therefore, the total fundraising is anticipated to reach approximately HKD 335.1 million, with net proceeds estimated at around HKD 259.5 million after deducting listing expenses.

In the early trading session, the stock opened down 13.54% at HKD 11.24, with a trading volume of HKD 52.69 million. As of the time of reporting, the stock had declined by 20.46%, trading at HKD 10.34.

Company Overview

Taimei Medical Technology is a digital solution provider focused on the pharmaceutical and medical device sectors in China, designing and offering industry-specific software and digital services to facilitate research and marketing in these domains.

The company’s revenue primarily derives from the sale of cloud-based software, including SaaS products and customized solutions, as well as related technical support. Additionally, it offers digital services, which primarily encompass digital clinical research services and IRC services. Last year, the company reported revenues of RMB 570 million, representing an annual increase of 4.4%, while the loss attributable to shareholders narrowed to RMB 350 million, reflecting a reduction of 16%.

Regarding the funds raised from this offering, approximately 35% will be allocated to optimizing and upgrading the TrialOS and PharmaOS platforms, along with their respective cloud-based software and digital services. Furthermore, 30% will be directed towards enhancing core technologies and research and development capabilities. Additionally, 10% will be earmarked for strengthening sales and marketing efforts, while 15% will be allocated for selectively pursuing strategic investments and acquisitions anticipated to expand the company’s existing product and service offerings, broaden its customer base, and enhance technological capabilities. Finally, the remaining 10% will be utilized for working capital and general corporate purposes.

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