Aesthetic Medical Sees Stock Plummet 32% Early in Weak Nasdaq Debut
The Shenzhen-based provider of plastic surgery sold 2.5 million American depositary shares, raising $30 million in its initial public offering on Friday.
China's Aesthetic Medical International Holdings Group Ltd. (Nasdaq: AIH) lifted off in trading on Friday on the Nasdaq Global Market, seeing its shares drop to $8.18 apiece from the issue price of $12.
The Shenzhen-based provider of plastic surgery sold 2.5 million American depositary shares, raising $30 million in its initial public offering. The pricing was the midpoint of its expected price range of $11 and $13 apiece. Upon liftoff, shares in the company tumbled 32%.
Aesthetic Medical, known as Peng'ai in China, provides surgical aesthetic treatments, including eye surgery, rhinoplasty, breast augmentation and liposuction, as well as laser and ultrasound aesthetic treatments. It also provides non-surgical aesthetic treatments, which comprise minimally invasive treatments and energy-based treatments such as laser and ultraviolet light treatments.
For the six months through June, the company reported revenue of $57.3 million, up 10 percent year-over-year. Net income was $11.7 million, soaring 388% from $2.4 million a year ago.
CW columnist Donovan Jones wrote in his analysis of Aesthetic Medical's IPO that the company may face challenges in the current U.S. market, given the volatility of the markets and negative sentiment for Chinese firms based on post-IPO performance.
Underwriting Aesthetic Medical's IPO are Cantor Fitzgerald & Co. and Haitong International Securities Co. Ltd. Co-managing the offering are Prime Number Capital LLC. Maxim Group LLC, Tiger Brokers (NZ) Ltd. and Valuable Capital Ltd.