Lung imaging technology company 4DMedical (ASX:4DX) is the latest IPO to more than double on debut in 2020.

The company’s software, XV, helps medical professionals monitor a patient’s lung performance and identify disorders. 4DMedical says it does this utilising less radiation than competing products and with no dyes at all.

The company raised $55m at 73c per share making it 2020’s largest ASX IPO to date.

4DMedical commenced trading at 11am and rocketed to $1.47 per share — just over 100 per cent higher.

4DMedical (ASX:4DX) share price chart


‘A significant milestone’

The company was founded back in 2005 and comes to the ASX with its technology already approved by the US Food and Drug Administration.

The US is the world’s biggest market opportunity for healthcare generally and respiratory diagnostics, and is also 4D’s primary focus.

The market is estimated to be worth $US13.7bn ($19.7bn) and represents 40 per cent of the global opportunity.

“We have been delighted with the high level of support and interest we have received throughout this process and welcome this significant milestone of becoming a listed company after 15 years of hard work,” CEO Andreas Fouras said.

“Continued growth of the business is a priority and we are eager to reward our supportive shareholders by delivering long-term value creation.”

Stockhead spoke with Fouras last month and he said that COVID-19 had increased the awareness among investors about lung diseases.

“Lungs are the number two cause of loss of life globally, but if you look at investment they haven’t been number two,” he said.

“So I think coronavirus has maybe helped focus the market’s attention that the number two loss of life could be a key area of investment.”