JD Health Seeks Up to $3.5 Billion in Hong Kong IPO

A gong stands at the Hong Kong Exchanges & Clearing Ltd. (HKEX) Connect Hall in Hong Kong, China, on Wednesday, June 10, 2020. Most Hong Kong people were caught off-guard by Beijing's proposal of the national security bill. Executive Council Member and the Chairman of HKEX Laura Cha said she was also surprised but was convinced the bill would ensure clarity and stability of the city. , Bloomberg

Julia Fioretti, Bloomberg News

Nov 24, 2020

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(Bloomberg) -- JD Health International Inc. is looking to raise as much as $3.5 billion in its Hong Kong initial public offering in what would be Asia’s biggest health-care listing on record.

The health-care unit of China’s No. 2 e-commerce giant JD.com Inc. is selling 381.9 million shares at HK$62.8 to HK$70.58 each, according to terms of the deal obtained by Bloomberg News.

JD Health secured six cornerstone investors for its IPO who agreed to subscribed for as much as $1.35 billion of stock, including Singapore sovereign wealth fund GIC Pte, Hillhouse Capital and BlackRock.

JD Health’s IPO is set to surpass the $2.3 billion offering by Japan’s Ostuka Holdings Co. a decade ago as Asia’s biggest health care IPO, according to data compiled by Bloomberg. The health-care and pharmaceutical sectors have seen a record wave of listings in Asia this year, spurred by strong investor demand amid the coronavirus pandemic.

JD itself completed a secondary listing in Hong Kong earlier this year in which it raised $4.5 billion in what is the city’s largest first-time share sale this year. The e-commerce giant is also mulling listing its logistics business as soon as next year, Bloomberg News reported on Tuesday.

Bank of America Corp., Haitong International and UBS Group AG are joint sponsors for JD Health’s IPO. The company plans to price the offering on Dec. 1 and list Dec. 8.

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