China’s JD Health plans Hong Kong IPO

“JD Health, the healthcare unit of JD.com, on Sunday filed a draft prospectus for a listing in Hong Kong, making it the third affiliate of the ecommerce company looking to go public this year,” TechNode reported.

JD also said it plans to spin off JD Health through a separate listing on the Hong Kong stock exchange’s main board. Through its JD Jiankang unit, JD Group will have an 81% stake in the new company, making it the largest shareholder. Other shareholders will hold less than 5% each.

Established last year, JD Health acts as an ecommerce platform for pharmaceutical products, medical supplies, vitamin supplements, and traditional medicines, among others. The company recently announced that it generated US$1.3 billion in revenue during the first half of 2020, registering a year-on-year growth of 76%.

JD Health’s trade debut plans come as the Covid-19 pandemic drives market interest in healthcare and biotech opportunities. The company competes with Alibaba’s healthcare subsidiary Ali Health, Tencent-linked Wedoctor, and Pingan Good Doctor.

In addition to JD Health, JD’s grocery delivery service Dada JD Daojia also conducted its IPO in the US, while its fintech unit JD Digits filed to go public in China.