Medical imaging company Singular Health’s $6m IPO triggers investor stampede
Health & Biotech
Health & Biotech
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Emerging medical imaging company Singular Health Group (ASX:SHG) has attracted widespread investor interest ahead of its listing on the ASX on Friday through a $6m IPO.
Five institutional investors are understood to have participated in the company’s heavily oversubscribed capital raising alongside sophisticated and retail investors.
ASX stockspert Bhavdip Sanghavi (@Bhavdip143 on Twitter) told Stockhead he likes Singular Health Group because of its IPO price and technology profile.
“3D medical imaging is an upcoming sector in the health industry and it has been the centre of attention for a lot of investors,” said Sanghavi who is participating in the IPO.
The fast-growing medical imaging sector in Australia is worth $4bn this year, and its growth is supported by government policies that have encouraged bulk billing, said Ibis World.
Bulk billing for medical services including diagnostic imaging has made the service more affordable and has boosted business volumes, the business analysis firm said.
Like many investors, Sanghavi was attracted to the share placement’s price of 20 cents per share as it represents an enticing entry point to a stock with strong growth prospects, he said.
“Singular Health’s IPO is attractively priced at 20 cents per share for a $14 million enterprise value, representing an attractive entry price for investors, and its market capitalisation at about $20m compares well to other companies in the medical imaging sector which have much higher market values of between $300m to $16bn,” said Sanghavi.
“The company’s nearest competitor in the ASX imaging sector for medical, 4D Medical (ASX:4DX) has a market capitalisation of $566m,” he said.
Other ASX companies in the same medical imaging space include Integral Diagnostics (ASX:IDX) with a market value of $937m, Mach7 Technologies (ASX:M7T) valued at $352m, Pro Medicus (ASX:PME) at $4bn, and Sonic Healthcare (ASX:SHL) with a market value of $16bn.
Singular Health Group has developed five software products which utilise the company’s proprietary Volume Rendering Platform technology, and it is currently focused on commercialising these.
The company has developed its own patented imaging technology that uses proprietary computer code and algorithms to accurately convert 2D images into 3D models.
This proprietary technology means that Singular Health Group has a strong competitive edge in the medical imaging sector and a unique selling point for its products.
The 2D to 3D conversion process is rapid, typically taking around two minutes, and the 3D models its technology produces can be visualised, manipulated, modified and reviewed on a standard computer monitor or by using virtual reality (VR).
“Singular Health’s flagship product is MedVR, which is a TGA IVD Medical Device Class I Software and is listed on the Australian Register of Therapeutic Goods.
“Another attraction of the stock is that Singular Health’s flagship software MedVR converts radiological imaging data from a series of 2D images into a fully-immersive 3D view or into virtual reality,” said Sanghavi.
“This can be used in a range of medical applications including orthodontic, maxillo-facial, prosthodontic, neurosurgical, oncology, general surgery and orthopaedics,” the popular social media stockwatcher added.
Singular Health Group’s MedVR software is in use by medical practitioners, medical students, hospitals and universities in countries including, Brunei, Hong Kong, Singapore, South Africa and Switzerland.
The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.