Interpretation of US IPOs ｜ ANEW Health (AVG.US): Non-pharmacologic Pain Management Leader's IPO in the US, Global Expansion Drives New Growth Engine

As global health consumption escalates and demand for non-pharmacologic pain management grows rapidly, local health service providers have also begun to enter the capital market stage.

Recently, Anew Health (AVG.US), a pain management and health service provider headquartered in Hong Kong, updated its prospectus and plans to issue 1.8 million common shares at a price of 4 to 6 US dollars each and list them on the NASDAQ capital market. It is estimated that the capital raised will be between 7.2 million and 10.8 million US dollars.

Amid the wave of accelerated iteration in the global health industry, this health service provider, which is rooted in Hong Kong and has a global layout, is quietly emerging and is about to take a critical step in IPO capitalization.

Stable business base, healthy customer quality and revenue structure

The Zhitong Finance App learned that Anew Health's business is to provide pain management and health services in Hong Kong under the “Functional Regeneration” brand. Functional Regeneration was established in 2007. It has four service centers in Hong Kong, and through the “ANKH” brand, it uses more than 16 years of pain relief experience to provide non-surgical, non-invasive, non-pharmacological pain management treatment and function enhancement therapy, as well as related health products and services, using high-end Chinese and Western technology.

According to the prospectus, Anew Health achieved total revenue of approximately US$40.2 million in fiscal year 2025, and the customer base is still growing steadily. During the fiscal year, the number of customers served by the company reached 1,039, an increase of 15% over the previous year's 8,692; the average customer's annual consumption also increased from US$6,278 to US$6,478, an increase of 3.2% over the previous year, reflecting the increase in customer stickiness and consumption capacity.

Judging from the business structure, the company's revenue mainly comes from two major sectors: pain management and health services (accounting for about 99.9%) and health care product sales.

Among them, it is worth mentioning that the company's core business does not rely on “one-time transactions,” but is based on prepaid packages and membership systems, which means that the company has strong cash flow predictability and business stability.

However, the company was under short-term pressure on the profit side. According to information, the company's net profit fell from 11.73 million US dollars in fiscal year 2024 to 5.54 million US dollars in fiscal year 2025. This change is mainly due to the increase in one-time expenses and management expenses due to strategic expansion, including investment in new service centers, personnel expansion, and one-time directors' bonuses, rather than a fundamental deterioration in operating profitability.

If these factors are excluded, the company's main business will maintain a healthy trend. In other words, it is not a problem with the business model itself; it is an inevitable investment in the expansion phase. As the operation of the new center gradually enters a stable period, these investments are expected to be transformed into a driving force for revenue and profit growth in the future.

The industry has broad prospects, and the strategy clearly targets the global market

Judging from the development trend, Anew Health's non-drug pain management circuit is ushering in historic development opportunities.

According to the data, from 2012 to 2025, the number of consumers in the Hong Kong non-drug pain management market grew from about 206,600 to an estimated 281,400, with a compound annual growth rate of 2.4%; during the same period, the market service value increased from HK$3,207 billion to an estimated HK$7.882 billion, with a compound annual growth rate of 7.2%.

The increase in market size is due, on the one hand, to the aging trend in Hong Kong and the global population, which is driving up the prevalence of pain and musculoskeletal diseases; on the other hand, increasing consumer awareness about the risk of opioid dependence and the side effects of invasive surgeries has also driven a rapid increase in demand for non-pharmacological and non-invasive treatments.

Among them, Anew Health is a direct beneficiary of this trend. With 16 years of accumulation since its establishment in 2007, the company has established a solid brand recognition in Hong Kong.

The Zhitong Finance App learned that the “ANKH” brand emphasizes the “non-pharmacological, non-surgical” treatment concept, and combines traditional Chinese medicine meridian theory with modern energy therapy techniques such as laser, electric current, radiofrequency, and ultrasound to help customers achieve overall health improvement of “recovery, detoxification, and strengthening”.

This differentiated solution, which combines tradition and modernity, not only conforms to the cultural identity of Oriental consumers, but also satisfies global preferences for scientific and non-invasive treatments, and has become the company's core competitiveness.

Judging from customer feedback, the company's service quality has been highly recognized. According to the company's internal customer survey from 2023 to 2024, more than 87% of customers were satisfied with the therapist's service, and nearly 70% clearly felt pain relief. High customer satisfaction not only supports the company's stable repurchase rate, but also lays the foundation for enhancing brand value through word-of-mouth communication.

This listing in the US is not only a key step in the company's financing expansion, but also an important opportunity for the internationalization of its brand and standardization of services. Looking ahead, Anew Health's strategic focus is clear and clear:

On the one hand, the company will continue to deeply cultivate the Hong Kong market, further cover target groups and strengthen local market share through the opening of new centers; on the other hand, international expansion will also accelerate. The company plans to set up new service centers overseas. Combined with the capital strength released by IPO financing, it is expected that Hong Kong's successful experience will be quickly replicated in other high-growth overseas markets.

Currently, Anew Health is in a critical stage of expansion and transformation. On the company's non-drug pain management circuit, its unique brand, treatment and strategic layout is expected to make it the most representative listing platform in the industry. With the launch of the IPO financing, the company is expected to accelerate its expansion in Hong Kong and overseas markets, further consolidate its leading position in the industry, and bring long-term growth returns to investors.