The Shanghai United Imaging Healthcare Co. Ltd. (SHA) Story

Shanghai United Imaging Healthcare Co., among the many companies in mainland China to launch $1 billion-plus listings this year, witnessed a remarkable surge on its trading debut.

The company, known for its medical imaging systems, saw its shares rocket by 65% to ¥181.22. This was after an initial spike of up to 75% soon after the market opened. The shares were initially priced at ¥109.88 each during the IPO, which accumulated ¥11 billion (equivalent to $1.6 billion), as per AKP's compilation.

This year, Shanghai United Imaging Co. Ltd. marked the seventh Chinese firm to launch an offering exceeding $1 billion. Despite a global deceleration in significant IPOs, from locations ranging from New York to London and Hong Kong, primarily due to concerns such as inflation and interest hikes, China continues to see vigorous IPO activity.

The company's debut ranks third among China's major IPOs this year. A portion of this success in China can be attributed to local regulations that cap valuations during public offerings, primarily focusing on domestic investors.

As per their prospectus, Shanghai United Imaging Co. Ltd. offers an array of services like medical imaging equipment, radiotherapy products, digital medical solutions, and more. Prominently, the top 10 medical facilities in China are listed as their clients.

However, 2022 presented challenges for Chinese health-care firms aiming to fundraise through IPOs, largely due to variables like alterations in the national drug approval policy, leading to a deceleration in sector growth rates.

With the funds raised, the Shanghai-cantered company intends to channel investments into medical equipment funds, research, development, sales infrastructure, and capital replenishment.

Throughout the IPO process, investors witnessed a fruitful 73% return.