Chinese healthcare giant JD Health is set for a $3.5bn (£2.6bn) IPO in Hong Kong next month, in what would be the city’s biggest listing this year.
JD Health is China’s largest healthcare platform by revenue, bringing in $1.6bn last year, and now has more than 70m active users. It is a subsidiary of Chinese e-commerce titan JD.com.
The healthcare platform plans to sell 382m shares in a range of HK$62.80 (£6.07) and HK$70.58 (£6.83), according to the term sheet seen by Reuters. A further option to sell 15 per cent more of stock would take the size of the IPO up to $4bn.
It comes after Chinese regulators suspended the $37bn IPO of Ant Group. JD Health’s IPO would be Hong Kong’s biggest in 2020 after the Ant issue fell through.
JD Health is a competitor of Ant affiliate Alibaba Health Information technology, which is valued at around $35bn. The Hong Kong IPO would value JD Health at about $29bn.
The term sheet showed that six cornerstone investors led by GIC, Tiger Global and Blackrock had taken up to $1.35bn in the deal.
If the so-called greenshoe option – which lets investors buy more stock if there’s high demand – is exercised, around 13.8 per cent of JD Health’s shares will be sold.