Disposable medical device maker Shandong Weigao Group Medical Polymer Products plans to raise $142.6 million through an initial public offering on the Growth Enterprise Market to fund expansion.
The company is banking on the mainland's urgent need to stop the spread of infectious diseases such as hepatitis and Aids as a result of repeated use of syringes.
Demand for disposable medical instruments would be driven by government initiatives, vice-chairman Zhang Huawei said.
'The Ministry of Health has agreed to work with the World Vaccine and Immunity Coalition Organisation to promote the application of disposable syringes in child vaccination injections,' Mr Zhang said.
To expand market share, Shandong Weigao will establish two production plants in southwest and northwest China.
About $84.9 million of the proceeds from the IPO will be used to buy production equipment.