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Shanghai United Imaging Healthcare Co., the latest in a slew of $1 billion-plus listings in mainland China this year, soared in its first day of trading.
Shares of the firm, which provides medical imaging systems, jumped 65% to 181.22 yuan, after rising as much as 75% shortly after open. They were sold at 109.88 yuan each in an initial public offering that raised 11 billion yuan ($1.6 billion), according to data compiled by Bloomberg.
The company is the seventh Chinese listing this year with an offering larger than $1 billion. Big IPOs remain active in the Asian country, in contrast to a slowdown in traditional venues from New York to London and Hong Kong as high inflation and rising interest rates damp prospects for equity sales.
The stock had the third-best initial session among large IPOs in China this year. New share sales in China owe part of their strong performance to the fact that valuation during the public offering is capped by local rules, with the process being mainly targeted at local investors.
Shanghai United Imaging provides medical imaging equipment, radiotherapy products, medical digital and other solutions to its customers, according to the prospectus. It has the top 10 medical institutions in China as clients, the document said.
Fundraising through IPOs for Chinese health-care companies has become more challenging in 2022 due to uncertainties that include the adjustment to the national drug approval policy, with growth rates for the sector slowing down.
With the proceeds from the share sale, the Shanghai-based firm plans to invest in a medical equipment fund, research and development projects and its sales network, as well as replenish capital.
The managers of the offering were CITIC Securities Co., China International Capital Corp Ltd. and Haitong Securities Co.