Ping An Good Doctor begins its share offering in Hong Kong

Ping An Healthcare and Technology Company started selling shares today in Hong Kong, aiming to raise as much as 8.77 billion yuan in its initial public offering.

Ping An Healthcare and Technology Company, also known as Ping An Good Doctor, started selling shares today in Hong Kong, aiming to raise as much as 8.77 billion yuan (US$1.39 billion).

As a health care unit of the Ping An Group, the company plans to sell around 160 million shares to global investors from Monday to Thursday, at a price range of HK$50.8 (US$6.47) to HK$54.8 per share.

Ping An Good Doctor estimates that it will raise up to HK$8.25 billion if the shares are sold at the median price of HK$52.8. 

The listing will be launched on May 4 in Hong Kong, the company's prospectus said. If priced at the top, it might become the city’s largest floatation since the IPO of Zhong An Online Property & Casualty Co last September, according to SCMP’s report.

The online health service platform said that some 40 percent of the net proceeds will be devoted to its business expansion, while approximately one third of the money will be used for funding the company’s investments and acquisitions.

Around one fifth of the proceeds will go to research and development, with the remaining 10 percent being allocated for working capital and general corporate purposes, according to the prospectus.

The prospectus shows that seven cornerstone investors may together purchase the company’s offerings worth HK$4.31 billion.

Those cornerstone investors are Blackrock Funds, Capital Research and Management Company Funds, Singaporean sovereign wealth fund GIC Private Ltd, Canada Pension Plan Investment Board, Malaysian government investment fund Pantai Juara Investments Ltd, CT Bright Holdings, the investment arm of Thailand’s conglomerate CP Pokphand, and Swiss Re Direct Investments Company.

Incorporated in November 2014, Ping An Healthcare and Technology operates China’s largest Internet healthcare platform in terms of average monthly active users. As of the end of last year, the company had a total of 192.8 million registered users. Average monthly active users in 2017 stood at 32.9 million across the platform.

It has established a nationwide network of healthcare service providers covering about 3,100 hospitals, including over 1,000 Class III Grade A hospitals, as well as some 1,100 health check-up centers, 500 dental clinics and 7,500 pharmacy outlets.

The company filed its IPO application this January, with a valuation of US$5.4 billion.

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