Corporate
Aroa Biosurgery - Largest ASX IPO in 2020
Tue 17th November, 2020

Aroa Biosurgery Limited (ARX)

Soft tissue regeneration company Aroa, with Wilsons Advisory 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 Advisory 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 Advisory 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 Advisory: Wilsons Advisory 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 Advisory 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 Advisory 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 238375) and/or Wilsons Corporate Finance Limited (ACN 057 547 323; AFSL 238383) (collectively “Wilsons Advisory”). It is being supplied to you solely for your information and no action should be taken on the basis of or in reliance on this communication. To the extent that any information prepared by Wilsons Advisory contains a financial product advice, it is general advice only and has been prepared by Wilsons Advisory without reference to your objectives, financial situation or needs. You should consider the appropriateness of the advice in light of your own objectives, financial situation and needs before following or relying on the advice. You should also obtain a copy of, and consider, any relevant disclosure document before making any decision to acquire or dispose of a financial product. Wilsons Advisory's Financial Services Guide is available at wilsonsadvisory.com.au/disclosures.

All investments carry risk. Different investment strategies can carry different levels of risk, depending on the assets that make up that strategy. The value of investments and the level of returns will vary. Future returns may differ from past returns and past performance is not a reliable guide to 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 Advisory representative.

To the extent that any specific documents or products are referred to, please also ensure that you obtain the relevant disclosure documents such as Product Disclosure Statement(s), Prospectus(es) and Investment Program(s) before considering any related investments.

Wilsons Advisory 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 Advisory disclosures at www.wilsonsadvisory.com.au/disclosures.

  • Share This Article

Written by

Staff Writer

Related articles