(Yicai Global) Sept. 24 -- Broncus Holding’s shares plunged in their Hong Kong market debut, after the Chinese producer of medical devices for lung conditions raised about HKD2.3 billion (USD295.4 million) in its initial public offering.

Broncus [HKG: 2216] ended today at HKD15 (USD1.93), an almost 20 percent drop from the offer price of HKD18.70, the top of the marketed range. The benchmark Hang Seng Index fell 1.3 percent.

Founded in 2012, the Hangzhou-based firm develops interventional respiratory products and works to provide innovative solutions for lung diseases. It ranked first by sales volume in China for interventional respiratory navigation devices from 2018 to last year, with a market share of 43.2 percent, according to research firm Frost and Sullivan.

The funds raised in the IPO will mainly go to develop core products, enlarge the firm’s production line, expand its product portfolio through potential acquisitions, and on general corporate purposes. Goldman Sachs and Haitong International Securities Group were the IPO’s co-sponsors.

Broncus had a net loss of USD13.8 million in the first four months of this year on revenue of USD1.6 million. Last year’s loss widened almost 50 percent to USD48.8 million. Revenue was USD3.3 million in 2020 and USD8.1 million in 2019.

The loss resulted from global operations and investment in research and development, the company said in its IPO prospectus.

Editor: Futura Costaglione