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Jiangsu medical device firm Meihua set to break seven-month Chinese IPO drought in New York
- Meihua International is set to price its Nasdaq IPO this week, targeting US$57.5 million
- Chinese companies outside the internet sector are testing investors’ demand for smaller IPOs after a regulatory clampdown by Beijing
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Meihua International Medical Technologies is poised to become the first Chinese company to list in the US in nearly seven months. A successful IPO could lay the groundwork for other Chinese issuers, after a regulatory crackdown by Beijing froze out mainland-based companies.
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The Jiangsu province based disposable medical-device maker is expected to price its IPO this week, according to the New York Stock Exchange website. Meihua is seeking to raise about US$57.5 million on Nasdaq from the sale of five million shares in a range from US$9 to US$11. It will trade under the symbol “MHUA”.
There is an overallotment option of 750,000 shares in case of strong demand. Meihua submitted its first draft IPO registration to the US Securities and Exchange Commission in December 2020.
Chinese companies had stayed away from New York since July, as they were caught between China’s regulatory clampdown and closer scrutiny by the US SEC on Chinese companies seeking to raise funds on Wall Street.
Foreign investors’ demand for Chinese issuers’ IPOs remains to be seen following ride-hailing operator Didi Chuxing’s controversial US$4.4 billion US IPO in June. The company went ahead with its IPO despite not having secured cybersecurity clearance back home.
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Consumer services firm Sentage Holdings was the last Chinese issuer to complete an IPO in the US, when it raised US$20 million on Nasdaq in July 2021, data from Refinitiv shows. Since then, the US market has not seen any IPOs from a China-based company.
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