China: Microport to spin-off heart valve specialists

Zhaohua Chang, chairman, executive director and chief executive officer, MicroPort

The rush to list on the HKEx continues. Microport Scientific medtech subsidiary MicroPort CardioFlow has revived plans to list that were delayed by the Covid-19 pandemic.

A specialist in transcatheter aortic valve implantation, the company had intended to float in the first quarter this year.

In a statement, MicroPort said that the spin-off would “unlock value” at a time when MicroPort CardioFlow was growing rapidly and would give shareholders “an opportunity to realise the value of their investment in the spinoff group under a separate standalone platform.”

The company posted a loss of Rmb192.6m (US$29.7m) for the first seven months of the year on revenues of Rmb48.8m.

Proceeds from the IPO will be used for R&D and to develop its products.

In April, the company raised US$130m from a pre-IPO round of funding.

JP Morgan, Citi and CICC are managing the deal.