Surgical tech firm UltraGreen.ai files for US$150 million IPO on SGX mainboard

[SINGAPORE] Medical imaging and surgery technology firm UltraGreen.ai is seeking a listing on the mainboard of the Singapore Exchange, after it registered its prospectus document with the Monetary Authority of Singapore on Wednesday (Nov 26).

The company, which develops fluorescence-guided surgery technology, offers fluorescence imaging services and supplies indocyanine green dyes used in surgical procedures, has also made an application with SGX to list its shares on Dec 3.

UltraGreen.ai is offering 112.1 million shares at US$1.45 or S$1.892 apiece, comprising 103.4 million new shares and 8.6 million vendor shares, with the aim of raising net proceeds of US$141.8 million or gross proceeds of US$150 million.

The offering shares comprise around 106.2 million placement shares, which will be offered via an international placement to institutional and other investors, and 5.9 million shares that will be offered via a public offer in Singapore. Separate from the offering, some 163.8 million cornerstone shares will be sold to cornerstone investors, but the company will not receive proceeds from this.

Its market capitalisation will be around US$1.6 billion, based on the offering price and its post-offering share capital.

Net proceeds from the offering and sale of cornerstone shares are estimated to be around US$377.1 million, but the company will only receive around US$141.8 million.

Of this amount, US$55 million will be used for capital expenditure and development of the company’s core products such as indocyanine green dyes, its UltraGreen Data platform and other products and technologies related to fluorescence guided surgery.

Another US$22 million will fund strategic investments and acquisitions, alongside investments and capital expenditure to support its expansion into new geographies, while US$64.8 million will be used for general corporate purposes and working capital needs.

Citigroup Global Markets Singapore and DBS are the joint issue managers and joint bookrunners and underwriters for the proposed initial public offering.

The group posted a profit before tax of US$33.8 million for its first half ended June, down from US$34.9 million in the year-ago period. Its revenue for the six month period stood at US$70.1 million, compared to US$58.3 million previously.

UltraGreen.ai does not have a fixed dividend policy at the moment, its product highlights sheet indicated. It noted that any final dividends must be approved by an ordinary resolution of its shareholders at a general meeting, and that all dividends must be paid out of profits available for distribution.

The group said that it is not permitted to pay dividends “in excess of the amount recommended” by the board and that it cannot provide assurance that dividends will be paid in the future.

Future plans

In terms of future plans, UltraGreen.ai plans to maintain its leading position in the fluorescence guided surgery space in its key markets across Europe and North America by increasing product adoption, expanding application areas and tailoring its offerings to address specific needs of healthcare professionals.

To optimise market economies, it plans to transition to a direct sales model in some markets, as it believes this approach enables it to align operations with sales strategies and maximise revenue potential.

It is also looking to expand its product portfolio to new markets in Asia-Pacific, Europe, the Middle East and Africa with “relatively low” penetration rates of indocyanine green procedures, as these markets present opportunities for enhancing the group’s presence and impact.

Specifically, it intends to deploy tailored marketing strategies that cater to regional needs and preferences. This could include offering a fluorescence imaging ecosystem for clinics, outpatient or step-down centres.

In particular, UltraGreen.ai aims to expand its presence in Asia as it believes the region offers “sizeable market opportunity”. It intends to tap this by establishing local offices and dedicated sales and regulatory teams in these markets.