JD Unit Seeks up to $3.5 Billion in Asia’s Biggest Health IPO

(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. The price range values JD Health at $25.3 billion to $28.5 billion.

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.

The planned IPO is set to surpass the $2.3 billion offering by Japan’s Ostuka Holdings Co. a decade ago as Asia’s biggest listing in the sector, 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 Health is the largest online health-care platform and online retail pharmacy by revenue in China, according to its prospectus. The company recorded revenues of 8.8 billion yuan ($1.33 billion) in the first half of this year, up from 5 billion yuan a year earlier.

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.

(Updates with financial information in 5th paragraph)

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