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Chinese online medical platform Ping An Healthcare and Technology to raise US$1b from Hong Kong IPO

Company, also known as ‘Good Doctor’, will be valued at US$5.4 billion by listing

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The HKEX Connect Hall at Exchange Square in Hong Kong. The Hong Kong stock exchange is pushing ahead with IPO reforms to allow weighted voting rights for technology companies. Photo: Xiaomei Chen

Ping An Healthcare and Technology, China’s largest health care and online medical platform, is to raise US$1 billion from an initial public offering in Hong Kong and will be traded in early May, after it got a verbal go-ahead by the city’s bourse, sources said on Thursday.

Shenzhen-based financial conglomerate Ping An Insurance (Group) will spin off the health care and technology unit, which is also known as “Good Doctor”, for the IPO, which will value it at US$5.4 billion.

The company’s revenue rose by 240.4 per cent to 1.02 billion yuan (US$162.2 million) in the last nine months of 2017 from a year earlier. But it still lost 497.4 million yuan in the same period, after a net loss of 614.2 million yuan during the first nine month period of 2016, according to an application prospectus published on Hong Kong bourse operator Hong Kong Exchanges and Clearing’s website.

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The potential IPO has already attracted major shareholders, including Softbank Vision Fund, the world’s largest private equity fund, and Vision Fund Singapore SPV, both of which have a 7.41 per cent stake in Ping An Healthcare, according to the document.

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The joint sponsors are Citigroup Global Markets Asia and JPMorgan Securities (Far East). Proceeds from the listing will be used for business expansion, potential acquisitions and the development of an artificial intelligence assistant and other technologies, it said.

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