Healthcare remains a steady sector for global equity investors. It has avoided much of the recent market turbulence, and the share prices of the three healthcare companies that have floated in the past ten days, have all performed well in the secondary market.
In Hong Kong, IVD Medical raised HK$1bn (US$131m) after pricing its shares at HK$3.07, the bottom of the indicative price range.
Although it had a flat debut on 12 July, its shares have performed fairly since then.
There was a heavy-ish turnover of 38.32 million shares and it ended the day at HK$3.07. But thanks to a recent positive profit alert, its shares have risen 2.3% since then to close last week at HK$3.14.
The distributor of in vitro diagnostic (IVD) products in China has said that it expects to report a 650% jump in profits and 400% rise in revenues for the first half of the year.
BOC International managed the deal.
In the US, SC Health, a special purpose acquisition company (SPAC) owned by Singapore-based private equity group SIN Capital, the owner of Fullerton Health, raised US$150m by offering 15 million shares at US$10 per share on 11 July.
On its NYSE debut the next day, its shares rose 1.8%.
Since then, its shares have continued to trade higher, notable given the general lack of volatility in SPAC shares. They ended the week up 2% at US$10.20.
Sole book runner for SC Health’s IPO was Credit Suisse.
But the star recent performer has been Crescera Investimentos-backed medical and healthcare education group Afya.
The Brazilian company raised US$260m in its Nasdaq IPO, pricing its shares at US$19 on 18 July. This was above the US$16-US$18 price range.
Profits at the Nova Lima-based company more than doubled last year and investors are excited about the company’s expansion plans. It already has 16 undergraduate and graduate campuses spread across 12 Brazilian states.
There was high demand for the shares and they jumped 26.8% on their debut.
Global coordinators are BoAML, Goldman Sachs, UBS and Itau with Morgan Stanley, BTG Pactual and XP Investimentos as joint bookrunners on the deal.