UltraGreen’s IPO
- 7 days ago
- 5 min read
By Aikie Davoren, Charlie Mercuri and Daniel Blitenhall (University of Melbourne); Nikhil Freiherr Raitz Von Frentz, Max Fischer, Daniel Barker and Moritz Ibe (University of St Andrews)
Photo: Suryadhityas (Unsplash)
Summary of IPO
Fluorescent-guided surgery (FGS) has been gaining momentum as hospitals look to improve surgical precision, reduce complications, and shorten recovery times. Within this niche, UltraGreen has built a strong position selling the dye used in these surgeries, alongside the tools that help surgeons see it. It has positioned itself as a global leader in the sector with its flagship product, indocyanine green (ICG). Competition within the sector is concentrated, with UltraGreen’s subsidiary, Diagnostic Green, being meaningfully larger than the next player.
UltraGreen raised roughly US$400m on the SGX to fund product development, strategic acquisitions, and expansion across APAC and Europe. Listing will also raise the company’s profile with hospitals and partners in a regulation-heavy space, while providing liquidity and a stronger currency for future M&A. Whilst the IPO is primarily about funding the next leg of growth, a practical tax-related feature for shareholders is Singapore’s one-tier corporate tax system, under which dividends from a Singapore-resident company are generally not subject to Singapore withholding tax.
“We are deeply encouraged by the strong support from institutional and retail investors. This response reflects growing recognition of how fluorescence-guided surgery is transforming surgical precision, and UltraGreen’s role at the forefront of that movement.” - Mr. Ravinder Sajwan, Chief Executive Officer and Executive Director of UltraGreen
Company and IPO Profile: UltraGreen.ai
Sector: Healthcare Technology
Exchange floated: Singapore Exchange (SGX) Mainboard (Ticker: ULG)
Amount raised: ca. US$400 million (incl. base offering and cornerstone commitments).
Offered price: US$1.45 per share
Number of shares: ca. 112.1 million shares in the base offer.
Over-allotment option: underwriters were granted an option to purchase up to ca. 20.7 million shares at the offer price.
Equity offered: total equity placement at ca. 275.9 million shares, incl. ca. 112.1 million shares in the primary offer plus ca. 163.8 million shares sold to cornerstone investors.
Valuation and relevant multiples at IPO:
Market Capitalization: ca. US$1.8 billion
EV: US$1.62 billion
EV/Revenue: 14.2x
EV/EBITDA: 22.8x
Coordinators/Advisors
Joint bookrunners: Citigroup Global Markets Singapore Pte. Ltd.; DBS Bank Ltd.
Joint global coordinators: Citigroup Global Markets Singapore Pte. Ltd.; DBS Bank Ltd.
Transaction legal counsel: Allen & Gledhill acted as transaction counsel to UltraGreen.ai.
Legal advisor to selling shareholder: Latham & Watkins advised on the offering for Renew Group (selling shareholder).
Notable investors: cornerstone investors include abrdn Asia, AIA Investment Management, Eastspring Investments, HSBC Global Asset Management, Lion Global Investors.
Strategic Rationale
UltraGreen’s public tranche of its Singapore IPO represents a definitive pivot from a pure-play medical device manufacturer toward global leadership in surgical intelligence. Raising US$400m, the company has secured the necessary capital and public attention to build out its AI-forward ecosystem and target burgeoning markets. UltraGreen looks to “[create] an entirely new category of surgical intelligence that will transform how procedures are performed,” while expanding “these innovations across more hospitals, more regions, and ultimately more patients worldwide.”
Proceeds will fund investment across its proprietary ICG dyes and imaging hardware, as well as its AI data platform. Advanced AI analytics shift its value proposition to customers from one-time hardware sales, to recurring, data-driven relationships. This further compounds gains made through their early 2025 acquisition of Perfusion Tech, accelerating their adoption of quantification in FGS. Expansion of these technologies positions UltraGreen to capture value across more touch points in the surgical workflow, creating a sustainable competitive advantage and recurring revenue opportunities.
The IPO also serves as a strategic geographical play, accelerating expansion into APAC. Management noted benefits specific to the Singapore Exchange (SGX) listing, leveraging the SGX’s robust framework for IP protection and its physical position at the crossroads of East and West. With APAC FGS adoption accelerating at a rate of 18.7% CAGR, the listing provides local credibility needed to deploy regulatory teams and scale operations across this region. While the current market capitalisation of UltraGreen was deemed too small for a Nasdaq debut, an SGX-Nasdaq dual listing bridge expected to go live in mid-2026 offers a clear path to US capital markets as the business continues to scale.
Ultimately, UltraGreen’s IPO serves as a step to dominate the digital transformation of the operating room. Securing a listing in this high-growth region positions UltraGreen to move beyond their core visualization technology offering and scale its advanced technology in the data-backed, precision surgery space.
Market Reaction
Build Up
UltraGreen was backed by strategic investors including 65 Equity Partners, Vitruvian Partners, and August Global Partners following a US$188 million funding round in September 2025 that valued the company at US$1.3 billion. The medtech firm experienced strong financial momentum, with FY2024 revenue reaching US$114.7 million (up 59.3% year-on-year) and net profit of US$56 million, representing an exceptional 48.8% net margin. The IPO shares were priced at US$1.45 each, valuing the company at US$1.6 billion. UltraGreen planned to raise US$150 million in new capital, with existing shareholder Renew Group selling shares worth US$250 million, alongside US$237.5 million in cornerstone commitments from 16 global healthcare-focused investors. This IPO was one of the largest in Singapore's recent history.
Launch
The stock surged 12% within hours of its launch to reach US$1.62 on the SGX before closing at US$1.52 (up 4.8%). The 13.6x oversubscription reflected investor appetite for high-margin healthtech companies and AI-enabled surgical platforms. UOB Kay Hian initiated coverage with a "buy" rating and US$2 price target, citing attractive growth prospects and margin expansion potential. As of February 12th, 2026, the stock trades around $1.66, valuing UltraGreen at approximately $1.90 billion and still about 9.21% above the issue price.
Potential Risks and Downsides
UltraGreen’s key downside is its significant dependence on a highly concentrated revenue stream. Over the past three financial years, ICG and related products have contributed over 94% of revenue, making the company highly reliant on the adoption and expansion of these products. Future growth depends on broadening clinical applications, increasing ICG adoption and expanding its distribution network. Failure to do so would result in a material slowdown in future financial performance.
A second major risk is their high reliance on a limited supply chain for its core product, ICG. UltraGreen sources its product from a small number of qualified API suppliers that need to meet rigorous regulatory standards. Suppliers’ failure to produce adequate supply would adversely impact the company’s ability to manufacture its products. While UltraGreen does have long-term supply arrangements and alternative sourcing facilities, it is not certain these measures will fully mitigate concentrated supply risks.
Finally, regulatory and compliance risks are significant. UltraGreen’s ICG products are pharmaceutical products and therefore must comply with strict regulations from global medical authorities. Compliance requires adherence to current good manufacturing practices, pharmacovigilance obligations and inspections of both the company and its third-party manufacturing partners. Non-compliance could result in product recalls, import restrictions or suspension of approvals. Additionally, evolving regulatory standards may increase compliance costs or require changes to manufacturing processes, which could adversely impact margins or product availability.
“We have shown a consistent and disciplined operating model including growth and value, and we believe this provides a solid foundation for the company for its expanding global market.” - Mr. Kwa Chong Seng, Chairman of UltraGreen.ai Limited.