(Bloomberg) -- Medical device maker Meihua International Medical Technologies Co. rose 29% in its trading debut after the first U.S. initial public offering by a China-based company since the July regulatory backlash sparked by Didi Global Inc.'s listing.
Meihua's shares, which sold for $10 in the IPO, closed at $12.92 Wednesday in New York trading, giving the company a market value of about $305 million based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. The company had downsized its offering to 3.6 million shares, raising $36 million after marketing 5 million shares for $9 to $11 each.
The debut by the medical device breaks the impasse for Chinese companies seeking to go public in the U.S. Ride-hailing service Didi -- over the objections of regulators in China -- raised $4.4 billion in an IPO in June.
Chinese regulators then announced a cybersecurity probe of the firm and banned it from adding new customers. That marked the beginning of a broader crackdown that wiped more than $1 trillion in value from U.S.-listed Chinese stocks and also prompted the SEC to beef up disclosure requirements.
Since then, Beijing has unveiled sweeping new rules tightening scrutiny over firms listing abroad in an attempt to prevent the leakage of sensitive data.
Scores of mainland peers rerouted their planned IPOs to Hong Kong. One small Chinese firm that debuted in early July had been the only successful U.S. listing since Didi, according to data compiled by Bloomberg. That doesn't include four Hong Kong-based special purpose acquisition companies that listed in the U.S.
Didi, whose shares have fallen 68% from ts IPO price, has said it plans to delist from the New York Stock Exchange and pursue a listing in Hong Kong.
Meihua, which filed originally with the SEC in August, later revised its filings to include warnings that the Chinese government might exert more oversight of international offerings.
The company's founder, Liu Yong Jun, together with his wife, Yin Liu, will control almost 16 million shares, giving them about 64% of the total voting power.
Meihua's offering was led by Prime Number Capital LLC, Shengang Securities Co., Revere Securities LLC and R.F. Lafferty & Co., according to the filing. Meihua's shares are trading on the Nasdaq Global Market under the symbol MHUA.
EXPLAINER: Why China, U.S. Clash Over Stock Listings Like Didi: QuickTake
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