Singular Health (ASX:SHG) share price rockets 100% higher following IPO

Singular Health Group Ltd (ASX: SHG) share price is rocketing higher on Friday after successfully completing its IPO…

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The Singular Health Group Ltd (ASX: SHG) share price is having an exceptionally strong first day as a listed company.

At one stage today, the 3D medical imaging company's shares were up 102.5% from its listing price to 40.5 cents.

The Singular Health share price has retreated slightly but remains up 87.5% to 37.5 cents at the time of writing.

The Singular Health IPO

Singular Health shares landed on the ASX boards today after completing an oversubscribed initial public offering (IPO) which raised $6 million at 20 cents per share.

According to its prospectus, the proceeds will be used to execute its growth strategy, fund research and development, working capital purposes, and for the purchase of a titanium 3D printer.

What is Singular Health?

Singular Health is a technology-driven medical imaging company. It has the mission of developing technologies that provide patients and practitioners with access to personalised, enhanced, medical data to inform better health decisions.

Its Volumetric Rendering Platform uses proprietary code and algorithms to accurately convert 2D medical imagery into volumetric 3D models. Users can then visualise, manipulate, modify, and review the model using a standard monitor or by utilising virtual reality.

The company is also looking to use its software to develop complementary new products. This includes, GeoVR, a product for the visualisation of geological data in 3D and virtual reality.

And while the company has now successfully completed the research, technology development, product development, and market validation stages of its commercialisation, it's still very early on in respect to revenue generation.

As things stand, the company has generated unaudited revenue of $22,609 so far in FY 2021.

But judging by the performance of the Singular Health share price today, some investors expect a big jump in revenue in the coming years.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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