Adicon officially rings the bell and goes public today!

At 9:30 a.m. on June 30, Adicon was officially listed on the Hong Kong Stock Exchange.

Adicon Holdings (09860.HK) is offering 33,192,500 shares globally, of which 3,320,000 shares are offered in Hong Kong, China and 29,872,500 shares are offered internationally, with a 15% over-allotment option. The offer will be made from June 19 to 23, 2023 with HK$12.32 per offer share, and the joint sponsors are Morgan Stanley and Jefferies.

After the listing, the market capitalization of Adicon reached 8,216 million CNY. Adicon estimates that assuming the over-allotment option is not exercised and based on the Offer Price of HK$12.32 per share, the Company will receive net proceeds of approximately HK$83.9 million from the Global Offering. Of the net proceeds, 15% is intended to be used to strengthen the Company's general and special inspection capabilities, including research and development and sales and marketing capabilities. 

Approximately 25% for network expansion through new laboratories, partnership investments and development of new channels. Approximately 25% for business development efforts to form strategic partnerships with industry players and strategic and add-on acquisition opportunities, 15% for upgrading and expanding the Company's existing laboratories, and 10% for investment in operating infrastructure, including logistics facilities, artificial intelligence technology and information technology infrastructure, and 10% of the net proceeds for working capital and general corporate purposes.

Based on the Offer Price of HK$12.32, the total number of Offer Shares to be subscribed by the Cornerstone Investors is approximately 23,647,000 shares. The cornerstone investors include Mindray Global, Hong Kong New Industries Bio, Fosun Diagnostics Technology (Shanghai) Co. According to Frost & Sullivan, Adicon is one of the top three independent medical laboratory ("ICL") service providers in China based on total revenue for the Track Record Period. ICL service provider in China. 

The company offers two types of tests, namely general and special tests. General tests typically measure various important health parameters, such as the condition and function of the kidneys, heart, liver, thyroid and other organs. Special tests are more complex tests that often involve expert interpretation and/or sophisticated technology. Adicon provides testing services to hospitals and health centers through an integrated network of 32 self-operated laboratories across China.