JD Health Debuts on HKEX with Biggest IPO at $3.5 Billion

JD Health Debuts on HKEX with Biggest IPO at $3.5 Billion

© Reuters.  © Reuters.

By Elise Mak

Investing.com – Jd Health International Inc (HK:6618), Chinese e-commerce giant JD.com's (NASDAQ:JD) healthcare unit, debuted on the Hong Kong Stock Exchange on Tuesday, with shares trading nearly 50% higher in the morning.

The healthcare company’s HK$27 billion ($3.5 billion) IPO is the biggest that the bourse has seen this year. JD Health priced its 381.9 million shares at HK$70.58 apiece, which were oversubscribed nearly 422 times in the retail tranche and around 31 times under the international offering. The stock opened at HK$94.5 then surged to as high as HK$104.3.

“This marks the second largest IPO issued by a Chinese company in the overseas stock markets, as well as the largest equity financing project in the history of Chinese Internet healthcare companies,” said China Renaissance, the exclusive financial advisor of JD Health’s IPO, in a statement.

The company is now valued at nearly $39 billion after the share price increase, up $10 billion from its valuation prior to the IPO.

JD Health is the largest online healthcare platform by revenue in China in 2019, recording a total revenue of ¥ 10.8 billion. It is also the largest online retail pharmacy by revenue in China in 2019 with a market share of 29.8%. Proceeds are expected to be used to further develop JD Health's retail pharmacy business and online healthcare services.

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