By Gina Lee

Investing.com – Assure Tech (Hangzhou) Co. Ltd. debuted on the Shanghai Science-Tech innovation board (STAR market) on Thursday, raising CNY1.2 billion ($187.95 million) in the process.

After trading at CNY96.8 an earlier session, shares rose 19.28% (11:59 ET) to CNY93.37

Minsheng Securities Co. Ltd., the sponsor of the offer for 15.33M shares was paid CNY78.28 to the Chinese firm.

Assure Tech’s focus is on developing, producing, and selling POCT reagents. They also have a bio-raw material technology platform that allows for the autonomous development and production antigens. The company’s products include different types of reagents, including a drug detection reagent, infectious disease detection reagent, pregnancy detection reagent, tumor detection reagent, heart muscle detection reagent.

According to the prospectus, the proceeds raised will be used to make a total of 300 million Class II and III medical devices, in vitro diagnostic reagents, instruments, and ancillary products; intelligent technical transformation project of in vitro diagnostic reagents and POCT instruments production; technology R&D center upgrade construction project; marketing and service network system construction project; and supplementary operating capital.

Assure Tech’s R&D expenses, however, are currently less than 8% of its revenue. From 2017 to 2020, the R&D expenses ratio of R&D expenses to revenue was 7.09%, 7.42%, 7.72%, and 4.87%, respectively.

Meanwhile, Assure Tech’s operating revenues from 2017 to 2020 were CNY111 million, CNY164 million, CNY210 million, and CNY1.2 billion respectively. CNY33 millions, CNY54million, CNY549 million and CNY649million were the net profits.