Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Acotec Scientific Holdings / Equity Capital Markets

Acotec, a leading China-based peripheral-vascular interventional device company, is looking to raise up to USD 300m via a Hong Kong listing.  In this note, we look at two core drug coated balloon products of the company, namely the AcoArt Orchid &amp; Dhalia for the above the knee artery stenosis and AcoArt Tulip &amp; Litos for the below the knee stenosis. Both AcoArt Orchid &amp; Dhalia, and AcoArt Tulip &amp; Litos reported efficacy that could be potentially better than its benchmark product. Thanks to its early mover advantage, the AcoArt Orchid &amp; Dhalia had a dominant market share. The main growth driver of the company's core product will be increasing penetration rate and indication expansion. Besides the DCB products, we think the company's product pipeline is not exciting. The company has a good management team but the pre-IPO investors are overall mediocre.

Acotec, a leading China-based peripheral-vascular interventional device company, is looking to raise up to USD 300m via a Hong Kong listing.  In this note, we look at two core drug coated balloon products of the company, namely the AcoArt Orchid &amp; Dhalia for the above the knee artery stenosis and AcoArt Tulip &amp; Litos for the below the knee stenosis. Both AcoArt Orchid &amp; Dhalia, and AcoArt Tulip &amp; Litos reported efficacy that could be potentially better than its benchmark product. Thanks to its early mover advantage, the AcoArt Orchid &amp; Dhalia had a dominant market share. The main growth driver of the company's core product will be increasing penetration rate and indication expansion. Besides the DCB products, we think the company's product pipeline is not exciting. The company has a good management team but the pre-IPO investors are overall mediocre.

Acotec (先瑞达) Pre-IPO: Early Mover Advantage in Peripheral DCB

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Zylox-Tonbridge Medical Technology / Equity Capital Markets

On March 23, <a href="https://www.smartkarma.com/entities/zylox-tonbridge-medical-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:32974:1" rel="noopener">Zylox-Tonbridge Medical Technology (ZYL HK)</a> submitted its listing application to the Hong Kong Stock Exchange and plans to be listed on the main board. Zylox-Tonbridge was founded in 2012. Since its inception, the Company has adopted and executed the strategic business model of developing innovative medical devices and solutions, focusing on the neuro- and peripheral-vascular interventional medical device market in China. The following mainly included insights on industry characteristics, business analysis and financial position.

On March 23, Zylox-Tonbridge Medical Technology (ZYL HK) submitted its listing application to the Hong Kong Stock Exchange and plans to be listed on the main board. Zylox-Tonbridge was founded in 2012. Since its inception, the Company has adopted and executed the strategic business model of developing innovative medical devices and solutions, focusing on the neuro- and peripheral-vascular interventional medical device market in China. The following mainly included insights on industry characteristics, business analysis and financial position. 

Pre-IPO Zylox-Tonbridge Medical Technology - Promising Market with Challenges

With the acceleration of the aging process, the prevalence of various vascular diseases continue to rise, and related medical needs have increased dramatically. Among them, interventional therapy has been highly recognized by clinicians and patients with its advantages of less trauma, fewer complications, high safety and less patient pain, and the market demand shows a rapid growth. Therefore, many domestic innovative medical device enterprises accelerated the pace of listing in order to seize more market share. For example, according to the disclosure of the HKEX, <a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (ASH HK)</a> applied to be listed on the main board on February 11, 2021. The following mainly include the insights on business, industry and financial position.

With the acceleration of the aging process, the prevalence of various vascular diseases continue to rise, and related medical needs have increased dramatically. Among them, interventional therapy has been highly recognized by clinicians and patients with its advantages of less trauma, fewer complications, high safety and less patient pain, and the market demand shows a rapid growth. Therefore, many domestic innovative medical device enterprises accelerated the pace of listing in order to seize more market share. For example, according to the disclosure of the HKEX, Acotec Scientific Holdings (ASH HK) applied to be listed on the main board on February 11, 2021. The following mainly include the insights on business, industry and financial position.

Pre-IPO Acotec Scientific Holdings - First-Mover Advantage Together with Challenges

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Acotec Scientific Holdings / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a> disclosed a partial offer from <a href="https://www.smartkarma.com/entities/boston-scientific-corp" target="_blank" data-smartkarma-citation="entities:11115:1" rel="noopener">Boston Scientific (BSX US)</a> to acquire a maximum of 203.7 million shares at HK$20 per share.</li>
<li>The partial offer is conditional on the offeror hitting 50.01% voting rights and approval by the requisite majority of shareholders. Irrevocables represent a minimum of 55.14% of outstanding shares.</li>
<li>Despite the recent share price pop on the back of FDA approval for Vericor, the partial offer represents an all-time share price high. Therefore, the offer will be declared unconditional.  </li>
</ul>



Acotec Scientific Holdings (6669 HK) disclosed a partial offer from Boston Scientific (BSX US) to acquire a maximum of 203.7 million shares at HK$20 per share.
The partial offer is conditional on the offeror hitting 50.01% voting rights and approval by the requisite majority of shareholders. Irrevocables represent a minimum of 55.14% of outstanding shares.
Despite the recent share price pop on the back of FDA approval for Vericor, the partial offer represents an all-time share price high. Therefore, the offer will be declared unconditional.  


Acotec Scientific (6669 HK)’s Partial Offer of HK$20 from Boston Scientific

China

Acotec Scientific Holdings Limited develops medical equipment. The Company develops, manufactures and markets thrombus aspiration catheter, drug-coated ballon, and other products. Acotec Scientific Holdings markets its products throughout China.

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Acotec Scientific Holdings (6669 HK)

Acotec (先瑞达) Pre-IPO: Early Mover Advantage in Peripheral DCB

Acotec is early in the peripheral artery drug coated balloon device market with a dominant market share for above-the-knee stenosis. Having said...

Ke Yan, CFA, FRM

Pre-IPO Zylox-Tonbridge Medical Technology - Promising Market with Challenges

This insights analyzed Zylox-Tonbridge Medical Technology in terms of the market potential, industry characteristics, business analysis, financial...

Xinyao (Criss) Wang

Pre-IPO Acotec Scientific Holdings - First-Mover Advantage Together with Challenges

This article analyzed Acotec Scientific in terms of its business, industry characteristics, financial position, and also include the concerns and...

Xinyao (Criss) Wang

Acotec Scientific (6669 HK)’s Partial Offer of HK$20 from Boston Scientific

Irrevocables at a minimum of 55.14% of outstanding shares will satisfy the key conditions. Therefore, the partial offer will be declared...

Arun George

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