JD Health looks to raise up to $3.5b in Hong Kong IPO

The company is selling 381.9 million shares at HK$62.8 to HK$70.58 (US$8.1 to US$9.11) each, which puts JD Health’s value at up to US$28.5 billion. Its financial debut could exceed Ostuka Holdings’ US$2.3 billion IPO and become Asia’s biggest listing in the space, the report noted.

Six cornerstone investors, including Singapore sovereign wealth fund GIC, Hillhouse Capital, and BlackRock, have agreed to subscribe for as much as US$1.35 billion of stock in the IPO.

JD Health is the largest online healthcare platform by revenue in China in 2019, recording a total revenue of 10.8 billion yuan (US$1.6 billion), according to the prospectus. It also claims to be the largest online retail pharmacy by revenue in China last year with a market share of 29.8%.

It generated 8.8 billion yuan (US$1.3 billion) in revenue for the six months ended June 30, increasing from 5 billion yuan (US$760.1 million) during the same period last year.

JD Health is the healthcare unit of Chinese ecommerce giant JD.com, which completed its secondary listing in Hong Kong earlier this year. It’s reported that JD.com is also mulling an IPO in Hong Kong for its logistics business JD Logistics, which could raise at least US$5 billion at a US$40 billion valuation.

Currency converted from Hong Kong dollar and Chinese yuan to US dollar: US$1 = HK$7.75, 6.58 yuan.