LifeTech IPO offer price set at HK$2.0 per share

The proceeds will be used for expanding its manufacturing facilities, supporting its product offerings, and enhancing its research and development of products currently in the pipeline.

LifeTech Scientific Corporation (“LifeTech”), a leading developer, manufacturer and marketer of advanced minimally invasive interventional medical devices for cardiovascular and peripheral vascular diseases and disorders, Tuesday announced that the Offer Price for its initial Public Offer and Placing was fixed at HK$2.0 per Share.

Mr. Xie Yuehui, Chairman and Executive Director of LifeTech, said, “LifeTech is pleased and honored with the share offer result during a period of global market and economic volatility. This solid support from both retail and institutional investors is an endorsement of our track record, and an understanding of our growth potential. After LifeTech is listed on the GEM Board of the HKSE, we will continue our quest to become a top global company.”

Out of 125,000,000 Shares, approximately 93.3% were offered through a Placing, and the remaining 6.7% through the Hong Kong Public Offer. Based on an Offer Price of HK$2.0 per Offer Share and assuming no over-allotment option is exercised, net proceeds from the Share Offer would be approximately HK$154.1 million, excluding underwriting commission and other expenses.

The Group will spend the proceeds on expanding its manufacturing facilities, supporting its product offerings, enhancing its research and development of products currently in the pipeline and expanding into complementary product areas that are not yet in its pipeline. Besides, the Group will also use the proceeds to acquire suitable businesses or license products and technologies, expand to key emerging markets and important international markets as well as enhance its marketing and distribution activities.

As a proprietary brand, LifeTech is one of the first Chinese companies selling occluders in China and believes it is the only company worldwide to have commercially launched enhanced occluders featuring ceramic coating technology.

The Group sells its products in 26 countries covering more than 1,450 hospitals across Asia, Europe, South America, North America and Africa. According to BioMedGPS report, the Group is the second largest provider of CHD occluders worldwide in terms of number of occluders implantation procedures conducted in 2010, with a market share of approximately 19%, 55% and 28% in selected markets, the BRIC countries and the China market respectively.

Possessing three generations of occluders, namely HeartR, Cera, and CeraFlex, the Group believes it offers one of the broadest product ranges of CHD occluders.

Moreover, the Group also offers six other types of minimally invasive implants and devices, and manufactures and sells nine types of associated delivery and supporting devices. In the future, the Group intends to maintain and enhance its leading-edge R&D capability, and develop more clinically effective and profitable products by itself.

Mr Xie concluded, “As the second largest provider of congenital heart defect occluders worldwide, LifeTech has a diverse portfolio of products, an outstanding R&D capability, a wide variety of products in the pipeline as well as adequate liquidity.

Capitalising on its leading favourable market position, the Group should be able to capture the opportunities in domestic and overseas markets so as to enlarge its market share in all its targeted regions, continuously boost the growth of its business and in turn reward the trust and support of our investors.”

Piper Jaffray Asia Limited is the Sponsor and Piper Jaffray Asia Securities Limited is the Lead Manager and Bookrunner.

Trading of the shares of LifeTech on the GEM Board of HKSE is scheduled to begin on Thursday.