Goldman-backed heart valve startup to mull HK IPO

HONG KONG: Venus MedTech, a Chinese developer of heart valve replacements backed by Goldman Sachs Group Inc, is considering a Hong Kong initial public offering (IPO), people with knowledge of the matter said.

Venus, based in the eastern Chinese city of Hangzhou, is weighing a plan to sell shares as soon as early next year, according to sources.

The medical device maker could seek to raise about US$300mil to US$500mil, the people said, asking not to be identified because the information is private.

Hong Kong is attracting a wider range of health-care firms after the stock exchange changed its rules to allow IPOs from unprofitable biotech firms.

Chinese cancer drug developer BeiGene Ltd, whose New York-traded shares have increased more than sevenfold since listing in 2016, started trading in Hong Kong earlier this month. Venus, founded in 2009, makes cardiac devices that treat congenital defects as well as valve degeneration in elderly patients that may not be candidates for open-heart surgery, its website shows.

Deliberations on a potential listing are at an early stage, and details of the offering could change, said the people.

A representative for Venus declined to comment. DCP Capital, the China-focused private equity firm run by former KKR & Co. senior executives, invested in Venus earlier this year to fund research and international expansion. Goldman Sachs agreed to a US$37mil investment in Venus in 2016.

The startup’s other backers include Qiming Venture Partners, Sequoia Capital China and Dinova Venture Capital. — Bloomberg