Sisram Medical to raise $200m in Hong Kong IPO

Sisram Medical Photo Alon Ron

China's Fosun Pharma acquired the company then called Alma Lasers in 2013 for $240 million.

Sisram Medical, formerly Alma Lasers before it was acquired in 2013 by Chinese corporation Fosun Pharma, has submitted a prospectus to the Hong Kong Stock Exchange. The company is seeking to raise $140-200 million at a company value of $400-500 million, compared with the $240 million price at which it was acquired.

The offering is likely to help Fosum Pharma reduce its burdensome debt.

Sisram is meeting the targets set for it by Fosum Pharma in 2014 in a 2014 interview, when the CEO said that Fosun intended to hold an IPO for the company. He added that Alma Lasers would acquire various types of Israeli medical device technologies, thereby developing into Fosun Pharma's medical devices arm. This part of the plan, however has not yet materialized.

Chinese government making acquisitions difficult

The company's announcement about the offering said that it would use the money raised to enable Sisram to make acquisitions in the medical devices sector. The Chinese government has begun raising obstacles to taking money out of the country for such investments, although the announcement did not say this. Nor did the announcement say whether the company is still focusing its search for companies to acquire in Israel. CEO Lior Dayan is managing Sisram Medical.

Sisram is a leader in the global medical esthetics market. The company has the fifth large share of this market, and the largest share in China. According to the company's prospectus, its business is growing. Sisram posted a $5 million profit on $32.6 million in revenue in the first three months of the year, 20% more than in the corresponding period last year. The company's revenue grew at an 8% yearly clip in 2014-2016, with its profit growing accordingly. Closing of the offering is scheduled tomorrow, with trading in the share slated to begin on September 19.

As part of the offering, the company also plans to list some of its shares for trading on other stock exchanges. Following the offering, Fosun's stake in Sisram Medical will be 51%.

2008 offering did not go through

Former employees of Lumenis Ltd. (Nasdaq: LMNS) founded Alma Lasers in 1999. Its products are used for noninvasive esthetic treatments, for example, laser treatment of the skin surface, RF radiation, heat treatments, ultrasound, etc. used for hair removal, tissue firming, and treatment for acne and wrinkles. The company relied on its sales to finance its development without raising external capital, before the TA private fund acquired a 63% controlling interest for $90 million in 2006, reflecting a company value of $150 million. TA subsequently increased its stake in Alma Lasers.

Immediately following the acquisition, TA prepared Alma Lasers for a Nasdaq IPO. The market crisis that began in 2007, however, closed the window of opportunity. The company renewed its plan for an offering in 2008, and submitted a prospectus for raising $75 million at a company value of $250 million, but the offering eventually fell through.

Published by Globes [online], Israel Business News - - on September 7, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Sisram Medical Photo Alon Ron
Sisram Medical Photo Alon Ron
Gali Weinreb, Shmulik Shelach and Globes' correspondent
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