China-headquartered e-commerce group JD.com’s medical and healthcare-focused spinoff, JD Health, has floated on the Hong Kong Stock Exchange in a HK$27bn ($3.48bn) initial public offering, CNBC reported on Tuesday.
The offering involved JD Health issuing approximately 382 million shares priced at HK$70.58 each, at the top of the HK$62.80 to HK$70.58 range set by the company, valuing it at almost $29bn. It is the largest IPO in Hong Kong this year.
JD Health’s online platform sells prescription medication in addition to a range of products including health supplements, medical supplies and contact lenses. It also manages a telemedicine service that allows users to book online consultations with qualified doctors.
The company raised $1bn from investment banking firm China International Capital Corporation’s CICC Capital unit, private equity firm Baring Private Equity Asia and alternative investment manager Citic Capital’s CPEChina Fund in May 2019.
Hedge fund manager and long-term JD.com investor Hillhouse Capital subsequently provided an amount of series B funding likely to have been more than $900m in August this year at a $12bn valuation.
The offering was sponsored by UBS, Bank of America and Haitong Securities. The underwriters have a 30-day option to buy additional shares that would increase the size of the IPO to about $4bn.
JD Health’s flotation was followed by news earlier today that another JD.com spinoff, logistics service provider JD Logistics, has invited banks to bid for underwriter roles in an initial public offering sources told Reuters would likely be sized between $2bn and $3bn.
