Korean medtech startup Neofect begins IPO procedures

Neofect, a South Korean medical technology startup specializing in smart rehabilitation solutions, has begun procedures to be listed on the country’s secondary bourse, Kosdaq, by next month, the company said Monday.

Neofect has applied for preliminary screening of its planned initial public offering, putting up for sale 1.8 million shares at 10,000-12,500 won ($9-11) per share.

The company is looking to raise between 18 billion and 22.5 billion won through the IPO. The book-building process will take place Nov. 12-13, and the shares will be allocated Nov. 19-20. Korea Investment Securities will manage the IPO.

Neofect’s Rapael smart rehab solutions allow patients to use portable, lightweight equipment to participate in various games, which are not only clinically proven to aid rehab, but also to motivate patients and engage their interest.

The firm is best known for its Rapael smart glove, a flexible robotic glove fitted with sensors that capture the patient’s motions and measure the degree of finger and wrist movement. It connects via Bluetooth to artificial intelligence-powered analytic software, and helps patients practice their motor skills through games.

It also offers the Rapael smart pegboard for upper body rehab and visuospatial cognitive training. The digitized board features games like smack-a-mole and connects to software that records and analyzes a patient’s progress.

With the funds generated by the IPO, Neofect hopes to continue improving and diversifying its product portfolio, with aims of accelerating its expansion into global markets.

“Neofect’s unique technology and products have already earned global approval and we have managed to successfully enter not only the business-to-business but the business-to-consumer market,” Neofect CEO Ban Ho-young said in a statement.

“With this IPO, we hope to build a rehab device portfolio encompassing all areas of rehab therapy, expand our sales channels to raise profits and grow into the global No. 1 health care platform company.”

By Sohn Ji-young (jys@heraldcorp.com)