Hygeia Healthcare, China’s largest oncology health care group backed by US private equity firm Warburg Pincus, has obtained commitment from nine cornerstone investors for about half the size of its initial public offering in Hong Kong. The nine, including Hillhouse Capital, China Southern Asset Management, Tiger Pacific Capital, OrbiMed Capital, and Lake Bleu Capital, have offered to subscribe for US$143 million worth of stock, according to its listing prospectus published on Tuesday. The Shanghai-based provider of radiotherapy services could raise as much as HK$2.22 billion (US$286.5 million) by selling 120 million shares at an Indicative price range of HK$17 to HK$18.50 each, according to a person familiar with the deal. Hygeia Healthcare aims to raise up to US$400 million in Hong Kong IPO amid frenzy of demand Based on interest shown by other institutional investors, the international placement tranche is expected to be oversubscribed by several times, the person said. Morgan Stanley and Haitong International Securities are the joint sponsors of the deal. The Hong Kong public offering , which will account for 10 per cent of the total shares on offer, or 12 million shares, will close on Friday, when the final pricing will be determined. The stock is expected to start trading on June 29, based on its indicative timeline. There is an over-allocation option granted to the underwriters to issue an additional 18 million shares to fill up excess demand. Hygeia could raise up to US$329 million if the option is exercised at the top-end of the price range. Warburg Pincus will reduce its effective stake to 13.79 per cent from 17.24 per cent after the stock offering, according to the IPO prospectus. The private equity firm has recently pushed some of its investments to the exchange, including Chinese logistics firm ESR Cayman, and owns stakes in Car Inc, among others. Hygeia Healthcare recorded more than 940,000 patient visits in 2019 among its network of hospitals, up 24 per cent from a year ago. It provides radiotherapy services to 15 hospital partners in nine Chinese provinces. Incidences of cancer in China are expected to grow to about 5.1 million by 2025, up from about 4.4 million last year, which is the highest in the world, according to a projection by consultant Frost & Sullivan. Hygeia’s flotation comes amid the US IPO launched by another Chinese oncology company, Genetron Holdings, which is seeking to raise up to US$175.5 million through its Nasdaq listing. It has set a price range of US$11.50 and US$13.50 per American depositary receipts. Final pricing will be determined Thursday, while listing is slated for Friday. Credit Suisse and CICC are the underwriters for the deal. Beijing-based Genetron provides early cancer screening, diagnosis, monitoring and treatment. It made a net loss of 541.24 million yuan (US$77 million) in the first nine months of 2019. Compared to the US market, Hong Kong is a relatively less mature fundraising hub for biotech companies as its track record is shorter and the investor base is smaller compared to the US, according to Jay Lee, an equity analyst at Morningstar Investment Management Asia. “The US health care market generally offers the highest pricing in the world for first-in-class and best-in-class drugs,” he said. “As a result, a company with ambitious innovation goals may want to consider a US listing to gain access to US specialist investors.”