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- Aroa Biosurgery (ARX) officially joined the ASX today after a $45 million initial public offering (IPO)
- The soft tissue regeneration company offered 40 million shares at 75 cents a pop, valuing the company at $225 million
- All five of Aroa’s current products use its Endoform technology, which utilises part of a sheep’s stomach as a scaffold to encourage cell regeneration and wound healing
- The platform has already been used in over four million procedures targeting “chronic wounds, hernia, soft tissue and breast reconstruction”
- More broadly, ARX says the market for its current products is valued at over US$1.5 billion (about A$2.12 billion)
- And looking ahead, its pipeline of future product addresses a market worth more than US$1 billion (approximately A$1.41 billion)
- ARX’s float follows a strong FY20, in which it reported NZ$22 million (around A$20.57 million) in revenue and NZ$18.7 million (roughly A$17.48 million) in profit
- On the back of the listing, ARX shares boomed — stock jumped almost 83 per cent in early afternoon trade to trade for $1.37 per share
Aroa Biosurgery (ARX) officially joined the ASX today after a $45 million initial public offering (IPO).
The soft tissue regeneration company offered 40 million shares at 75 cents a pop, valuing the company at $225 million.
The $45 million IPO was made up of $30 million in primary capital and $15 million from a sell-down triggered by early investors.
Aroa says the float received strong support from institutional investors across Australia and New Zealand, as well as its existing shareholder base, which subscribed for roughly half of the capital raised.
The float was underwritten by both Bell Potter and Wilsons.
“We’re delighted to reach this key milestone for the business and eagerly welcome our new shareholders to the journey,” says Aroa Managing Director and CEO Brian Ward.
“Since founding Aroa in 2008, we’ve developed the Endoform platform technology to deliver clinically effective products and a strong pipeline which places the business in an ideal position for continued growth across the U.S. and other global markets,” he continued.
“With our committed board, management and staff, we look forward to continuing to grow the value of Aroa, deliver better healing outcomes to patients and generate positive returns for our shareholders,” Brian concluded.
What is ARX?
New Zealand-based ARX specialises in wound treatment and soft tissue reconstruction.
The company’s current offering, encompassing five regenerative products, has been used in over four million surgical procedures, targeting “chronic wounds, hernia, soft tissue and breast reconstruction.”
It’s taken Aroa over a decade to form its Endoform soft tissue regeneration platform.
The technology uses part of a sheep’s stomach as a ‘scaffold’ for new cells as a wound tries to heal. The patient’s cells use that matrix to generate fresh tissue and re-establish blood supply, healing the laceration.
Source: Aroa Biosurgery
All five of Aroa’s products, which have been approved for sale in the U.S., utilise the Endoform technology.
Significantly, the company says they’re between 20 and 60 per cent less expensive than their biological competitors but offer superior performance.
The company boasts regulatory clearance in over 37 countries.
More broadly, ARX says the market for its current products is valued at over US$1.5 billion (about A$2.12 billion). Looking ahead, its pipeline of future product addresses a market worth more than US$1 billion (approximately A$1.41 billion).
The company’s float follows a strong FY20, in which it reported NZ$22 million (around A$20.57 million) in revenue and NZ$18.7 million (roughly A$17.48 million) in profit.
On the back of the listing, ARX shares boomed — stock jumped almost 83 per cent in early afternoon trade to trade for $1.37 per share.
