Adicon plans to raise $52.29 Million in Hong Kong Listing through Global Offering

Adicon, a Chinese diagnostic laboratory company, has announced its plan to raise approximately $52.29 million through a global offering in its upcoming Hong Kong listing. As part of its upcoming Hong Kong listing, the company intends to issue 33.2 million shares, priced at HK$12.32 per share. The global offering will include about 10% of the shares for investors based in Hong Kong, while the remaining shares will be offered internationally. 

On June 19, Adicon disclosed its intention to raise money through this listing to expand its operations and advance its diagnostic lab capabilities. 

Earlier this year, the firm had concluded an oversubscribed funding round for preferred shares, raising a total of US$88 million. The funding round was led by Malaysia’s sovereign wealth fund Khazanah Nasional and included participation from Lake Bleu Capital, Cenova Capital, OrbiMed, Mirae Asset, and other investors. 

Notably, global private-equity firm Carlyle Group, an existing supporter of Adicon, was the primary contributor following this funding round. 

At present, Adicon has attracted significant investment from five cornerstone investors who will acquire shares worth $37.17 million in the upcoming initial public offering (IPO). Among these investors, global investment firm Carlyle Group holds the largest stake in Adicon as its top shareholder, having initially invested in the diagnostic lab back in 2018.

The pre-listing shareholder structure outlined in the prospectus reveals that Carlyle is the controlling shareholder of Adicon. Carlyle holds a substantial 39.87% of the shares through its subsidiary Pearl Group Limited. Additionally, Mr. Lin Jixun and Mr. Lin Feng, who are brothers, collectively hold 24.90% of the shares, with Mr. Lin Jixun owning 12.45% through Corelink and Mr. Lin Feng holding the same percentage through Mega Stream. 

Headquartered in Hangzhou, Zhejiang Province, Adicon Holdings is an independent medical laboratory service provider in China. The company and its controlled entities operate a network of 24 fully-owned diagnostic laboratories across the country. Its comprehensive range of testing services is offered to over 10,000 active customers across 28 provinces, providing outsourcing solutions for diagnostic testing.

With a portfolio of approximately 4,000 medical diagnostic tests, including both general and special examinations, Adicon has become a prominent medical laboratory service provider in China. In 2022 alone, the company conducted a staggering 165 million tests. The primary sources of Adicon’s revenue stem from its medical diagnostic test services, supported by a smaller portion of medical product sales, contributing to its overall success and growth in the market.