24 Jun 2020

Aroa Biosurgery to go public on ASX

1:01 pm on 24 June 2020

An Auckland-based medical technology company plans to raise $AU45 million in an initial public offering on the Australian Stock Exchange.

Generic shot of operating table/surgery in hospital.

Aroa Biosurgery which makes soft tissue repair products and sells them to hospitals. Photo: 123RF

Aroa Biosurgery which makes soft tissue repair products and sells them to hospitals, will use the money to ramp up manufacturing, as well as invest in sales and marketing and pay down debt.

Chief executive and founder Brian Ward, who would have an 11 percent stake in the company, said it planned to expand throughout its main market - the US, where it has sold products to more than 600 hospitals.

"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 US and other global markets."

It would also keep working in its smaller markets - Canada, Europe and Asia.

Aroa plans to sell $30m worth of new shares at 75 cents each, with existing shareholders selling down $15m worth of current stock.

The company which made almost $19m in gross profit and had $22m in revenue this financial year employs 140 staff across its Auckland and US sites.

Ward said its products, which are used in healing wounds and surgical reconstruction, are cheaper and more effective than its competitors and the markets it operates in are worth more than $US2 billion.

It offers five products which have so far been used in 4 million procedures.