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Latham Advises Underwriters in Venus Medtech Inc.'s Hong Kong Initial Public Offering

December 10, 2019
Transaction represents the first medical devices IPO under Chapter 18A of HKEX’s new listing regime.

Venus Medtech (Hangzhou) Inc. (“Venus Medtech”), a market leader in a large untapped and fast-growing transcatheter heart valve industry in China, raised approximately HK$2.6bn (US$331m) in its IPO in Hong Kong. The company has sold 78,537,500 H shares at an offer price of HK$33 per H share. The offer price marks the top end of its price range, with Hillhouse Capital and GIC Private Limited among cornerstone investors.

The transaction marks the first medical devices company to be listed in Hong Kong under the Chapter 18A of the HKEX’s new listing regime for biotech companies, with around 311 times oversubscription in the Hong Kong public offering. Goldman Sachs (Asia) LLC, China International Capital Corporation Hong Kong Securities Limited, Credit Suisse (Hong Kong) Limited, China Merchants Securities (HK) acted as joint sponsors for the transaction.

As the leading transcatheter heart valve medical device player in China in terms of implantation volume in 2018, Venus Medtech has established a transcatheter heart valve platform with robust R&D, manufacturing and commercialization capabilities. The company intends to use the proceeds to fund ongoing sales and marketing of existing commercialized products as well as ongoing and planned R&D and commercial launches of other product candidates.

Cathy Yeung, Global Vice Chair of Latham & Watkins’ Capital Markets Practice and Chair of the firm’s Greater China Practice, commented: “We are pleased to advise on this landmark transaction. The success in conducting IPOs under HKEX’s new listing regime will open many opportunities for biotech companies in the region.”

Hong Kong partner Terris Tang added: “We are thrilled to be part of this first-of-a-kind Chapter 18A deal. The IPO underlines the firm’s deep understanding of the biotech sector and its ever-changing regulatory landscape.”

Latham & Watkins LLP represented the underwriters in the transaction with a capital markets team led by Hong Kong partners Terris Tang, Cathy Yeung, and Allen Wang, with Hong Kong partner Dominik Sklenar, Hong Kong counsel Mandy Wong and Louis Rabinowitz, Hong Kong associates Wei Wei and Alex Lai, and Beijing associate Fan Wang.