Ping An healthcare business trades flat after $1.1b IPO
Ping An Healthcare & Technology – operator of the Chinese healthcare-focused mobile app known as Ping An Good Doctor – closed flat on its Hong Kong trading debut following an HK$8.77 billion ($1.1 billion) IPO.
The company sold 160.1 million shares at HK$54.80 apiece, the top end of the indicative range, and it will sell an additional 24 million shares if the overallotment option is fully exercised. Seven cornerstone investors covered approximately HK$4.32 billion of the offering and the retail portion was oversubscribed 653 times.
Ping An Healthcare’s stock opened at HK$57.30 on May 4 and reached as high as HK$58.70 before falling back to close at the IPO price. The Hang Seng Index dropped 1.3% for the day.
Parent company Ping An Insurance is the controlling shareholder with a 46.20% interest and will remain so – on 38.41% interest – if the overallotment option is fully exercised. SoftBank Vision Fund, which acquired a 7.41% stake for $400 million in February, will have around 6.16% post-offering.
The company previously raised $500 million in a Series A round in April 2016. Investors included Guotai Junan Asset Management, New Alliance Capital, Zhuhai Harmony Healthcare Investment Fund, JICC Wealth Management, Shenzhen Regent Investment, Redmount Investments and Jumbo Sheen. ClearVue Partners and Lyfe Capital also participated.
Founded in 2014, Ping An Healthcare provides an online platform that connects consumers and patients with healthcare services providers. The company has built an 888-strong in-house medical team that offers online consultations, hospital referrals, and appointment services.
It has built up a network of healthcare services providers covering 3,100 hospitals, 1,100 check-up centers, 500 dental clinics and 7,500 pharmacies. In addition to online consultation and matching services, Ping An Healthcare sells a variety of healthcare and wellness products online. As of December 2017, it had 192.8 million registered users on its platform.
Revenue came to RMB601.5 million ($95 million) in 2016, up from RMB278.7 million a year earlier. However, the company's net loss widened from RMB323.7 million to RMB758.2 million over the same period.
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