As an exclusive report, WeDoctor, a Chinese healthcare solutions platform backed by the country’s conglomerate holding company, has announced to convene a Hong Kong listing next week through inviting several bank investors for its initial public offering (IPO). Two sources told Reuters, The decade-year-old healthcare company, WeDoctor aimed at leading its market capitalization up to $10 billion through this public offering.
WeDoctor’s Healthcare Services
The Hangzhou-based company, WeDoctor, was founded in 2010 by an expert in artificial intelligence (AI) technology development, Jerry Liao in a view to facilitating online services for medical treatment in China.
At present, WeDoctor has more than 210 million registered users mainly in China that provide online appointment booking, prescription, and diagnosis services for the customers. The company currently has been conducting its operations by associating with about 360,000 doctors and linking nearly 3,200 hospitals.
It is among the technology-driven firms that are seeking to gain a space in China’s overburdened public healthcare market. Globally, the healthcare industry remained a key area where the demand for efficient medical services keeps on increasing and consumers willing to pay efficiently to get convenient access to doctors and health services.
The healthcare industry in Chinese markets has witnessed several other dominant players including Ping An Good Doctor (Ping) also formally known as Ping An Healthcare and Technology Co Ltd. WeDoctor’s rival, Ping has raised $1.1 billion in an IPO two years ahead.
In May 2018, WeDoctor raised $500 million in a private funding round led by its key existing investor, a leading Chinese conglomerate group, Tencent Holdings Ltd. (Tencent) that made the company valued at $5.5 billion. The company, which is backed by Tencent and Goldman Sachs, is now looking for raising its capital up to $1 billion in the IPO and could be the first major company pursuing Hong Kong listings since the inception of coronavirus outbreak.
Two sources explained that WeDoctor has called for the participation of the investment banks in Hong Kong and mainland China to its ‘beauty parade’ event which would be held via video conferencing and in person at the company’s offices for bankers located in China. The company’s new chief financial officer, John Cai, who is also the shareholder and formerly working as a strategic partner AIA would participate in the event.
One source claimed that the proposed plan of WeDoctor, which would be perhaps completed in the second half of the year, would include its key unit, online healthcare services in the IPO but exclude some units such as Cloud-services.
Reuters explained that the IPO deal for the company would be a signal that equity capital markets, which have been hit by the virus outbreak, could regain some momentum in the second quarter of 2020.
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