According to the Zhitong Finance App, iFLYTEK (02506) will raise shares from December 18, 2024 to December 23, 2024. It plans to sell 7.03555 million H shares globally. The Hong Kong public sale accounts for about 10%, and the international sale accounts for about 90%. The offering price will be HK$82.8 per share, with 50 shares per lot. The shares are expected to be listed on December 30, 2024.

According to reports, the company is a medical solution provider enabled by artificial intelligence. The products and solutions provided support various medical services from health risk warning, early screening, assisted diagnosis and treatment, and evaluation of treatment effects to post-diagnosis management and chronic disease management. The company independently develops artificial intelligence technology to support the company's products and solutions. Specifically, the company provides (i) primary care services to assist doctors in primary care institutions to improve service capabilities and enable regional management agencies to achieve more effective monitoring; (ii) hospital services to improve the efficiency of diagnosis and treatment of grade hospitals and doctors; (iii) patient services to improve the convenience and quality of medical services enjoyed by patients (including outpatients, hospitalized patients discharged from home, and other individual customers); (iv) regional medical solutions to assist regional health care management agencies to carry out comprehensive data-driven management and promote the effectiveness of health insurance funds use.

According to Frost & Sullivan, the company ranked first in the Chinese medical artificial intelligence industry in terms of revenue in 2023, with a market share of 5.9%. iFLYTEK, a leading artificial intelligence company focused on the development of core artificial intelligence technology, is the controlling shareholder of the company.

Assuming that the over-allotment rights are not exercised and that the offer price is HK$82.8 per share, the net proceeds from the global sale are approximately HK$0.5071 billion. Of this, about 32.4% of the net proceeds will be used to invest in research and development to continuously strengthen the company's core capabilities. Approximately 26.6% of the net proceeds will be used to further enrich the company's products and services through upgrading existing products and developing new products. Approximately 24.7% of the net proceeds will be used to strengthen commercialization capabilities and expand the company's service network. Approximately 6.4% of the net proceeds will be used to acquire companies that may have a synergy effect with the company's existing production capacity, such as medical device manufacturers. The company's acquisition targets include medical device manufacturers or existing manufacturing facilities with advanced production capabilities. Approximately 10.0% of the net proceeds will be used for working capital and other general business purposes.

Furthermore, the company has entered into a Cornerstone Investment Agreement with Cornerstone Investors, according to which Cornerstone Investors agreed to subscribe for the relevant number of shares to be purchased at a total sale price of approximately US$35.57 million, subject to certain conditions. Cornerstone investors include Xingqun Co., Ltd. (wholly owned by China Merchants China Fund Co., Ltd. (00133)), Daan Investment Co., Ltd., Hengqin Guangdong-Macao Deep Cooperation Zone Industrial Investment Fund (limited partnership), Xunmedical Co., Ltd., and Costone China Growth Capital I L.P.