Chinese dental firm Angelalign Technology has launched its Hong Kong IPO and is looking to raise as much as HK$2.91 billion ($375.3 million) from the share sale.
The company is offering 16.8 million shares in the range of HK$147 to HK$173 apiece, according to a report from CIC today. At the top end of its range, Angelalign would command a market capitalization of HK$28.7 billion.
There is also an over-allotment option of 2.5 million shares on the deal. If exercised, Angelalign could raise HK$3.35 billion and hold a market capitalization of HK$29.1 billion.
Angelalign plans on using more than half the funds from the share sale to construct a research and development and manufacturing facility, and enhance R&D initiatives and capabilities. The other portion of proceeds will be used towards hiring sales employees, marketing, investing in its IT system, and boosting its medical services.
Goldman Sachs and CICC are the joint sponsors, bookrunners, and global coordinators on the deal.
Founded in 2003, Angelalign makes clear aligners and dental braces for patients looking to straighten their teeth. Angelalign commenced the sale of its first clear aligner product in 2006. In addition, Angelalign provides dental experts with case assessment and treatment planning services.
In 2020, Angelalign’s revenue improved to 816.5 million yuan from 645.9 million yuan in the previous year. Also, net profit last year more than doubled to 150.9 million yuan versus 67.7 million yuan in 2019.
CareCapital Group, which invests in oral and dental care firms, purchased a majority stake in Angelalign in 2015. Once the IPO closes, CareCapital will control roughly 60% of voting power in Angelalign.
Orders for Angelalign IPO will be taken until June 8, with trading in Hong Kong set to commence on June 16. The IPO will be priced on the same day trading begins.