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First Israeli Company Sisram announces proposed listing on SEHK Main Board with offer price between HK$8.88 and HK$12.35 per share

2017-09-05 21:49
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-Leading Global Provider in Energy-Based Medical Aesthetic Treatment Systems

HONG KONG, Sept. 5, 2017 /PRNewswire/ -- Sisram Medical Ltd ("Sisram" or the "Company"; stock code: 1696.HK), a leading global provider of energy-based medical aesthetic treatment systems, today announced the proposed listing of its shares on the Main Board of The Stock Exchange of Hong Kong Limited ("SEHK"). The Company will be the first Israeli company to get listed in Hong Kong.

Sisram plans to offer an aggregate of 110,000,000 shares (subject to the over-allotment option), consisting of 99,000,000 international offer shares (subject to reallocation and the over-allotment option) and 11,000,000 Hong Kong offer shares (subject to reallocation), at an indicative offer price range between HK$8.88 and HK$12.35 per share. The listing of Sisram constitutes a spin-off of the Company from Fosun International Limited ("Fosun International") and Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* ("Fosun Pharma"). Of the 99,000,000 offer shares initially being offered under the international offering, 5,500,000 offer shares will be offered to qualifying shareholders of Fosun International pursuant to the preferential offering.

The Hong Kong public offering opened at 9:00 a.m. on Tuesday, 5 September 2017 and will close at 12:00 noon on Friday, 8 September 2017 in Hong Kong. Dealings in shares on SEHK are expected to commence on Tuesday, 19 September 2017, with the stock code 1696.HK in board lots of 400 shares each.

Shanghai Free Trade Zone Phase I Equity Investment Fund Partnership Enterprise (Limited Partnership), Rise Huge Corporation Limited and Neo Derm Group Limited are the cornerstone investors. China International Capital Corporation Hong Kong Securities Limited and Jefferies Hong Kong Limited (in alphabetical order) are the joint sponsors, joint global coordinators, joint bookrunners and joint lead managers. Fosun Hani Securities Limited is the joint global coordinator, joint bookrunner and joint lead manager. Haitong International Securities Company Limited and Huatai Financial Holdings (Hong Kong) Limited are the joint bookrunners and joint lead managers. China International Capital Corporation Hong Kong Securities Limited is the sole settlement agent and sole stabilizing manager.

The largest provider of energy-based medical aesthetic treatment systems in the PRC and the fifth in the energy-based medical aesthetic treatment system market globally

Sisram is the largest provider of energy-based medical aesthetic treatment systems in the PRC. According to the Medical Insight Report, Sisram was ranked fifth globally in 2016 in terms of revenue derived from sales of energy-based medical aesthetic treatment systems. Taking advantage of the global growth in the market of energy-based medical aesthetic treatment systems and an overall increase in discretionary income globally, the Company, as the leader in the aesthetic medical treatment system market, expected to continue capitalizing on the growth of this market by cooperation with the Controlling Shareholder, Fosun Pharma. Besides, the Company also develops energy-based minimally invasive treatment system market segment, embracing the rapid growth in global energy-based vaginal rejuvenation treatment system. Sisram Medical was incorporated in 2013 when Fosun Pharma acquired Alma Lasers Ltd. ("Alma"). Today, Alma is a wholly-owned and principal operating subsidiary of Sisram. Broad technology platform and comprehensive product offerings with a wide range of applications has enabled the Company to meet the diverse and specific needs of various treatment providers and their treatment recipients.

Strong R&D capability laid a solid foundation to continue launching a wide range of products and developing new technologies

The Company's R&D efforts focus on meeting the specific needs of treatment providers using a systematic and user-oriented approach. For the each of 3 years from 2014 to 2016, more than 90% of the company's revenue from sales of products was derived from products that it developed in-house. The numbers for 2014 to 2016 are 91.8%, 93.0% and 93.7% respectively. The Company's brand Alma has launched over 50 models at treatment systems and more than 100 models at applications in surgical, medical aesthetic, and beauty segments. Sisram has a stable and professional management team, many of which having over 10 years industry experience. The Company's innovations have, among other things, made measurable improvements in causing less treatment recipient pain, minimizing the need to use pre-treatments consumables (e.g., skin-cooling gels or pain-relieving creams), improving efficacy and decreasing treatment time, which help to enhance treatment providers' practices and operating efficiency.

Efficient mix of global sales and distribution channels resulting in high profitability

The Company sells treatment systems in approximately 80 countries and jurisdictions worldwide. In the United States, Canada, Germany, Austria and India, the Company engages in direct sales to treatment providers. The Company maintains a lean and efficient direct sales team and structure capable of effective sales and marketing. In India, where the Company had only sold the products to distributors until recent years, the Company established a local subsidiary to engage in direct sales and it became profitable within the first year of its establishment. In other geographic markets including the PRC and rest of the Asia Pacific region, EMEA and Latin America, the Company sells products to distributors, who in turn sell the products to treatment providers. The Company has generally enjoyed stable long-term relationships with distributors, as evidenced by the fact that the Company have had at least three years of business relationships with over 40 of the Company's distributors. Distributors bring about the knowledge of the local business and regulatory environments and their access to local treatment providers and other market participants. Working with distributors enables the Company to expand their sales coverage at a faster pace and with much lower fixed costs. The selling and distribution and general and administration expenses are relatively low among the leading companies in the industry.

Premium brand name associated with quality and reliable products, as well as high level of customer service

The Company's brand "Alma" and many of its products and technologies, such as the signature Soprano and Harmony families of products and SHR technology, are known brand names in the global medical aesthetic treatment system market. The products and technologies have received positive commentary from physicians globally, and have also won a number of awards and recognitions. The Company's brand has a reputation for safety, reliability and high quality. All of the technologies utilized in the Company's current products are registered with CE and approved for sale in Europe, and all the Company's products being sold in the U.S. have obtained the required FDA's 510(k) clearance. The Company adopts a stringent quality control over the production process and supply chain, and it purchases most of the key raw materials and components from the approved suppliers in Israel, the United States, Germany, the United Kingdom and Spain. In addition, the Company offers a high level of customer service and support, and has been recognized for fast and on-time product delivery to customers. To help ensuring that the sales force provides professional support and guidance to treatment providers, each of the Company's salespersons is required to undergo a clinical and technical training programs.

Mr. Yi Liu, the Chairman and Executive Director, said, "Sisram is the first Israeli company to be listed in Hong Kong. Through the listing, the Company is expecting to enhance brand and business development in the PRC as well as attract new investors seeking investment opportunities in the medical devices sector, consequently accelerate our development." Looking forward, Mr Liu added, "We will continue to promote our brands, increase market awareness and sales of our products, as well as expanding our sales and distribution channels. We will continue to meet the evolving demands of treatment providers and treatment recipients by launching innovative products driven by our research and development strength. Also, we will continue to increase our market share in the global energy-based minimally invasive treatment system market and strengthen our position as the largest provider of energy-based medical aesthetic treatment systems in the PRC. Furthermore, we will capture growth opportunities and add new revenue streams through acquisitions or strategic partnerships globally, so as to maximize the return to our shareholders."

Disclaimer:

Not for publication, distribution or release, directly or indirectly in or into the United States or any other jurisdiction in which such publication, distribution or release would be prohibited by applicable laws.

This press release does not constitute and is not an offer to sell or the solicitation of an offer to buy securities (the "Securities") of SISRAM MEDICAL LTD (the "Company") in the United States or elsewhere. The Company has not registered and does not intend to register the Securities under the US Securities Act of 1933, as amended (the "Securities Act"), and the Securities may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration under the Securities Act.  There will be no public offer of the Securities in the United States, Israel or any jurisdiction other than Hong Kong.

About Sisram Medical Ltd

Sisram Medical Ltd (stock code: 1696.HK) is a leading global provider of energy-based medical aesthetic treatment systems, with comprehensive in-house capability to design, develop and produce such systems, which often feature the Company's innovative and proprietary technologies. "Alma" brand, as well as the brands of many of the Company's products such as "Soprano", "Harmony", "Accent" and "FemiLift", are widely recognized and well regarded among treatment providers and treatment recipients internationally. The Company has also been the largest provider of energy-based medical aesthetic treatment systems in the PRC market and one of the leaders in the medical aesthetic treatment system market globally, in terms of revenue in 2016, according to the Medical Insight Report. The company sells its treatment systems in approximately 80 countries and jurisdictions worldwide. Sisram, incorporated in 2013 in Israel, is a non-wholly owned subsidiary of Fosun Pharma. Fosun Pharma is a leading healthcare group in China with businesses covering the whole healthcare industry chain.

*

For Identification Purpose

Source: Sisram Medical Ltd

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