TORONTO, ON / ACCESSWIRE / December 8, 2020 / Finance executives at Toronto-based Hamilton Chukyo Brokerage have today commented on JD Health International Inc. as it surged up to 75% in the biggest initial public offering (IPO) by a healthcare company in Asia.
“At the close of trading in Hong Kong on Tuesday, the stock finished up 56% to HK$110 after pricing at the high end of the marketed range in its $3.5 billion IPO,” commented Michael Williams, Head of Private Wealth Management at Hamilton Chukyo Brokerage. “The first-day gains raised the market value of JD Health to around $44 billion which exceeds that of competitor Alibaba Health,” he added.
The listing is the biggest of the first-time share offerings in Hong Kong this year, only a second listing by JD Health’s parent company was larger when it raised $4.4 billion in June.
JD Health and other online healthcare platforms in China, including Ping An Good Doctor and Alibaba’s AliHealth, have this year reported a surge in revenue and user activity. Patient concerns over visiting hospitals throughout the coronavirus outbreak in China prompted online consultations to spike in early 2020.
Online consultations and pharmacies often provide a way to bridge the longstanding gaps in China’s healthcare coverage, where the best doctors and equipment are assembled in top-tier hospitals around the country’s major cities.
“JD Health is the first major tech listing in Hong Kong since November when Chinese regulators intervened to suspend Ant Group’s planned $37 billion IPO, which would have become the world’s biggest,” commented Anthony Roberts, Head of Institutional Trading at Hamilton Chukyo Brokerage.
JD Health’s platform has hosted more than 100,000 online consultations per day, a figure that peaked at 150,000 during the height of the Covid-19 outbreak in China.
According to researchers at Hamilton Chukyo Brokerage, JD Health’s online pharmacy business had 72.5 million annual users and its healthcare platform, which helps patients communicate with medical professionals over the internet, has over 65,000 doctors.
Cornerstone investors for the JD Health listing included asset manager BlackRock, Singapore sovereign wealth fund GIC and private equity firm Hillhouse. Underwriters on the share offering included BofA Securities, Haitong Securities, UBS.
Hamiton Chukyo Brokerage provides financial advice and asset management services to private, institutional and corporate clients worldwide.
Christian Marcus, Head of Market Research
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SOURCE: Hamilton Chukyo Brokerage
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