Banking & Finance

Fosun unit Sisram Medical seeks US$200 million in Hong Kong share listing

The maker of medical lasers will sell shares in Hong Kong and other markets in a move seen by analysts as part of the Fosun group’s plan to reduce its overall debt burden

PUBLISHED : Monday, 04 September, 2017, 8:20pm
UPDATED : Tuesday, 05 September, 2017, 12:26pm

Sisram Medical, a unit of Chinese conglomerate Fosun International, said it was seeking an initial public share offer of up to US$200 million on the Hong Kong stock exchange, a move seen as part of Fosun's effort to ease its rising debt burden.

Sisram Medical will sell 10 per cent of its 99 million new shares in Hong Kong, with the rest being offered on other global markets. The Hong Kong tranche is being marketed at an indicative price range of HK$8.88 – HK$12.35 per share, with the company targeting proceeds of US$144 million to US$200 million from the listing.

The subscription period starts on Tuesday and closes on Friday, and the firm hopes to begin trading on September 19.

China’s Fosun says future expansion will be in line with new government rules

Incorporated in Israel in 2013 by Fosun and its affiliates as a vehicle to acquire Israeli medical laser provider Alma Lasers, Sisram will become the first Israeli firm to list in Hong Kong. After the listing, the company will remain a subsidiary of Fosun’s pharmaceutical unit, Fosun Pharma, Sisram said.

Fosun Pharma has a 66.2 per cent stake in Sisram.

“We will use the proceeds raised to support some of Sisram Medical’s M&A activities,” said Liu Yi, chairman and executive director of the company.

He said that some of Sisram’s suppliers would be takeover targets for the company, while mainland China, the US and India would be its three major markets.

Sisram is the biggest provider of aesthetic devices in China, with a market share of 16.2 per cent. The company saw net profit rise 15.5 per cent to US$5 million for the first three months of this year, while its revenue reached US$32.6 million for the period, from US$27.6 million in the same period of 2016.

“We see huge opportunities from a thriving middle class [in China],” said Lior Dayan, CEO of Sisram.

One of China’s most acquisitive companies, Fosun International, the parent of Fosun Pharmaceutical, has been under pressure after the Chinese government’s crackdown on companies’ overseas buying sprees.

Seven companies in the Fosun group listed on the A-share market in the first half, including a snack food company and an environmental protection firm.