QT Vascular IPO - upcoming IPO

Recently, the IPO fever seems to heat up again. While there are 2 upcoming IPOs, QT Vascular and PACC Offshore Services Holdings (POSH); the former seems to be down-played due to the lack of advertising and significantly smaller size.

Introduction

QT Vascular produces devices to treat diseased arteries in the heart and elsewhere, aims to develop new products and enhance its existing ones. The company, which operates out of California and Singapore, registered revenue of US$1.5m for FYSep12, and doubled to US$3m in FY13. 

Current flagship product is a balloon catheter known as the "Chocolate" PTA balloon device, which is implanted to treat peripheral artery disease, or blocked arteries in the leg. It is the first Singapore-designed device to win approval from the US FDA. 

The company counts multi-national pharmaceutical company Johnson & Johnson, the Economic Development Board's Biomedical Sciences Investment Fund, and homegrown Juniper Capital among its major shareholders. QT Vascular is working with UOB Kay Hian and Prime Partners for the IPO.

Details of IPO
The company will list on the Catalist, with a placement of 196,429,000 new shares, at S$0.28 each. This translates to about S$50 million in proceeds, less fees. The offering is not made public and only Each of Three Arch Partners, BMSIF and J&JDC intends to subscribe for Placement Shares in the Placement.

QT Vascular will use S$5 million for commercial expansion and marketing purposes, while S$15 million will be used for new product development. The rest of the proceeds – S$30 million, will be used for general working capital purposes.

The IPO Prospectus can be found here.

Opinion of IPO

Since you are not able to buy it before it list in Catalist, should you buy after the IPO? IMO, it's a no-no. Just look at the continued losses it has been making.

Secondly, It doesn't even have a website!? Maybe it's only me who cannot find it though. Lastly, Biomedical technology companies similarly like Biosensors tend to fluctuate a lot based on the Patents and successful breakthrough next time. While it may work in the U.S. due to strong coverage, it may not bode so well for a rather small Catalist company like QT Vascular.