from the October 2017 issue

Sisram Medical raises $112m in Hong Kong IPO

Fosun Pharma, held the IPO in the lower part of the range targeted.

Medical esthetics company Sisram Medical (formerly Alma Lasers) last week completed its IPO on the Hong Kong Stock Exchange, raising $112 million. $88 million is going to the company, while the rest came from an offer for sale by Fosun Pharma subsidiary Magnificent View Investment, which controls Sisram.

The IPO was held in the lower part of the price range at which the company was aiming, at $8.88 per share. According to previous announcements, Sisram was trying to raise $200 million. Trading in the Sisram share began on September 19, and it is now trading at $8.77, 1.2% below the opening price, reflecting a $490 million company value, after money.

China's Fosun buys Alma Lasers for $240m
Fosun Pharma acquired Alma Lasers in 2013 at a $240 million company value. The company operates in Israel in the field of medical equipment for esthetic treatments. Ziv Karni, who is no longer with the company, and a team of engineers who formerly worked at Lumenis Ltd. (Nasdaq: LMNS) founded Alma Lasers in 1999. The company's products are used for non-invasive esthetic treatments. The company developed on the basis of its sales, without raising external capital, until private equity fund TA Associates acquired control of it in 2006 at a company value of $150 million.

Alma Lasers submitted a prospectus for raising $75 million at a $250 million company value in 2008, but the offering was eventually abandoned, and the company was sold to Chinese investors several years later.

First in China, fifth in the world
Sisram, a company founded by Fosum Pharma for the purpose of acquiring Alma Lasers in 2013, is the entity that has now held its IPO. The company is managed by CEO Lior Dayan. According to the prospectus published by the company for the IPO, Sisram has the fifth largest worldwide market share and the largest market share in Chijna.

In the first three months of the year, Sisram posted $32.6 million in revenue, 20% more than in the corresponding period last year, and a $5 million profit. The company's revenue grew 8% year on year in 2014-2016, and its profits grew at the same pace.

Sisram posted a $20.4 million net profit on $118 million in revenue in 2016. The company's announcement of its IPO stated that it would use the money raised for acquisitions in the medical devices sector.

Reprinted from the Israel High-Tech & Investment Report October 2017

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