Chinese health care platform JD Health raises US$3.5 billion in Hong Kong’s second largest IPO this year
- Completion of JD Health’s IPO takes the total amount of funds raised on the Hong Kong bourse to a 10-year high
- JD.com-backed Chinese crowdsourced on-demand delivery and retail platform Dada Nexus is seeking new funding in a separate follow-on share sale
JD Health, the health care arm of Chinese e-commerce giant JD.com, has priced its initial public offering (IPO) at HK$70.58 (US$9.1) per share, according to people familiar with the transaction, which will see it raise US$3.5 billion in Hong Kong’s second-largest deal this year.
The offer price was at the top-end of the price range, which had been marketed to investors at HK$62.8 to HK$70.58 a share. A listing on the main board is scheduled for Tuesday.
The strong demand for JD Health’s IPO, which put 381.9 million shares on offer, comes amid a sanguine outlook for digital health.
In a recent survey by Bain & Company, conducted among 1,800 consumers and 250 physicians across Asian countries such as China, Indonesia and Australia, nearly half of the respondents said they would adopt digital delivery models, such as telemedicine, and remote care in the next five years.