JD Health, the health-care unit of Chinese e-commerce giant JD.com, has raised $3.5 billion in a Hong Kong initial public offering (IPO), CNBC has confirmed.
The company issued 381.9 million shares priced at 70.58 Hong Kong dollars ($9.11) per share, according to a person familiar with the matter. That was at the top end of of the 62.8 Hong Kong dollars to 70.58 Hong Kong dollars marketed to investors, the person said.
JD Health shares are expected to start trading on Dec. 8.
Bloomberg first reported the details of the IPO.
The listing marks another big win for the stock exchange in Hong Kong which has seen major Chinese technology firms flock there to raise money.
JD Health’s parent company, JD.com, carried out a secondary listing in Hong Kong in June. Another Chinese internet firm NetEase also pulled off a secondary listing in Hong Kong in June.
JD.com owns around 78% of JD Health. The latter’s business is focused on online health-care services such as consultations with doctors as well as its online pharmacy. JD Health brought in revenue of 8.78 billion yuan ($1.34 billion) in the six months ended June 30, up from 4.99 billion yuan in the same period last year.
China’s technology giants have accelerated their push into digital health care following the coronavirus
outbreak earlier this year. Internet search giant Baidu is in discussions with investors to raise up to $2 billion over three years for a new biotech company, CNBC reported in September.