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By Gina Lee
Investing.com – Shanghai HeartCare Medical Technology Corp Ltd.'s (HK:6609) shares plunged on their first trading day on the Hong Kong Stock Exchange while China Telecom (NYSE:CHA) Corp’s shares surged in its market debut in Shanghai on Friday.
HeartCare Medical’s Hong Kong shares slipped 23.51% to HK$130.8 ($16.81) by 1:26 AM ET (5:26 AM GMT). It comes after healthcare technology platforms need to get approval from the government for the methods of diagnoses, prescriptions and use of medicine to ensure safety, Chinese media said earlier in the day.
Founded in 2016, HeartCare Medical focuses on developing neuro-interventional medical devices, aiming to reduce the mortality rate and improve the prognosis of stroke.
Its product portfolio includes both neuro-interventional and cardiac medical devices, with both commercialized products and product candidates.
It has two core products, including CaptorTM thrombectomy device (Captor) and left atrial appendage (LAA) occlude. Captor is for the treatment of atacute ischemic stroke and has been commercialized in China, while and the LAA occlude is for atrial fibrillation and is in the process of NMPA registration review.
Nearly half of the net proceeds, or around HK$444.2 million, will be used for the R&D, manufacturing, and marketing of its core products. Four of its products have been commercialized. Moving forward, it expects to commercialize up to nine candidates in 2021 and about 10 candidates from 2022 and 2025, including the sirolimus intracranial drug-eluting balloon catheter for intracranial stenosis treatment.
Meanwhile, China’s largest mobile operator China Telecom’s shares surged nearly 44% on Friday. However, its Hong Kong shares (HK:0728) slid 5.12% on Friday.
The IPO comes as China aims to build the world’s largest 5G networks. The company plans to use the proceeds to develop 5G infrastructure and applications and cloud businesses.