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Aroa Biosurgery - Largest ASX IPO in 2020
Sun 23rd August, 2020

Aroa Biosurgery Limited (ARX)

Soft tissue regeneration company Aroa, with Wilsons acting as Joint Lead Manager and Joint Underwriter, recently completed a $45 million initial public offering (IPO), positioning the business to capitalise on its leading technology and market opportunity.

The IPO followed an $18 million pre-IPO raising, and was met with high demand from both new and existing shareholders which encompassed institutional, professional and sophisticated investors.

Senior research Analyst, Dr. Shane Storey, said “very early we assessed that Aroa’s biomaterial would change clinical practice across wound care and soft tissue reconstruction. We’ve known the business since inception so it was rewarding to see them get the recognition they deserve from the capital markets.”

Trading up an impressive 80% day one on its initial listing price, Aroa became the largest ASX IPO in 2020 and the largest New Zealand IPO since 2017. Its success in market comes off the back of past and continued clinical studies as well as peer reviewed publications – Aroa has regulatory clearance in more than 37 countries. The Australian Financial Review said, fund managers are likely to compare Aroa to ASX-listed wound care business Polynovo, which saw its market cap expand by more than $1 billion in the past 12 months.

Head of Corporate Finance, Rob Snow said, “It was fantastic to see the ASX investor base embrace this highly innovative leader in medical devices. Wilsons was thrilled to support the company through its IPO and we look forward to assisting Aroa in the next phase of its journey as a listed company”.

Aroa’s primary innovation focus is on improving the rate and quality of healing in complex wounds and soft tissue reconstruction. This material has enabled a portfolio of products for soft tissue regeneration, plastic surgery, complex wound healing, burns treatment and traumatic injury.

Wilsons have been advising Aroa for several years. Their market leading products and commitment to research and development has made it a key player in the medical devices field. It is an exciting company to be involved with as they offer affordable products which have been shown to provide substantial improvement in treatment outcomes, including in hernia recurrence rates, when compared to existing treatment options. The company’s products have been used in more than four million procedures to date.

Aroa intends to grow its sales in the USA as its principal market; the existing and new product pipeline focused on US$2.5b total addressable market opportunity in the US. So far, Aroa has achieved sales with more than 600 hospitals in the US as well as being on contract with major group purchasing organisations and surgical distributors. It also intends to build markets in Canada, Europe and select Asian countries.

For more information contact: 

Head of Corporate Finance, Rob Snow
rob.snow@wilsonsadvisory.com.au / (02) 8247 6645
Head of Corporate Finance Origination, Richard Sherman
richard.sherman@wilsonsadvisory.com.au / (03) 9640 3879

About Wilsons: Wilsons is a financial advisory firm focused on delivering strategic and investment advice for people with ambition – whether they be a private investor, corporate, fund manager or global institution. Its client-first, whole of firm approach allows Wilsons to partner with clients for the long-term and provide the wide range of financial and advisory services they may require throughout their financial future. Wilsons is staff-owned and has offices across Australia.

Disclaimer: This communication has been prepared by Wilsons Advisory and Stockbroking Limited (ACN 010 529 665: AFSL 238 375) and Wilsons Corporate Finance Limited (ACN 057 547 323: AFSL 238 383) (“Wilsons”), and to the extent that it contains advice, that advice is general in nature and does not consider your personal circumstances.

The information in this communication does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. Past performance is not a reliable indicator of future performance. On that basis, any advice should not be relied on to make any investment decisions without first consulting with your financial adviser. If you do not currently have an adviser, please contact us and we would be happy to connect you with a Wilsons representative.

To the extent that any specific documents or products are referred to, please also ensure that you obtain the relevant document or Product Disclosure Statement(s) before considering any related investments.

Wilsons and their associates may have received and may continue to receive fees from any company or companies referred to in this communication (the “Companies”) in relation to corporate advisory, underwriting or other professional investment services. Please see relevant Wilsons disclosures at www.wilsonsadvisory.com.au/disclosures.

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