JD Health stock sale in HK shaping up to be Asia's biggestBusiness | 25 Nov 2020 3:11 pm
JD Health International is looking to raise US$3.5 billion in its Hong Kong initial public offering in what would be Asia’s biggest health care listing on record, Bloomberg reports.
The health care unit of China’s No 2 e-commerce company JD.com Inc is selling 381.9 million shares at HK$62.8 to HK$70.58 each, according to terms of the deal obtained by Bloomberg News. The price range values JD Health at US$25.3 billion to US$28.5 billion.
JD Health secured six cornerstone investors for its IPO who agreed to subscribed for as much as US$1.35 billion of stock, including Singapore sovereign wealth fund GIC Pte, Hillhouse Capital and BlackRock.
The planned IPO is set to surpass the US$2.3 billion offering by Japan’s Ostuka Holdings Co a decade ago as Asia’s biggest listing in the sector, according to data compiled by Bloomberg.
JD Health is the largest online health care platform and online retail pharmacy by revenue in China, according to its prospectus. The company recorded revenues of 8.8 billion yuan (US$1.33 billion) in the first half of this year, up from 5 billion yuan a year earlier.
JD itself completed a secondary listing in Hong Kong earlier this year in which it raised US$4.5 billion in what is the city’s largest first-time share sale this year.
Bank of America Corp., Haitong International and UBS Group AG are joint sponsors for JD Health’s IPO. The company plans to price the offering on December 1 and list December 8.