JD.Com Unit Set For Asia's Largest-Ever Healthcare IPO Above $3B

JD.Com Inc’s JD healthcare subsidiary JD Health International Inc could be valued between $25.3 billion and $28.5 billion in its Hong Kong initial public offering, Bloomberg reports.

What Happened: With approximately 381.9 million share issues in a price range of HKD 62.8 and HKD 70.58, the Hong Kong listing is expected to generate between $3 billion and $3.5 billion in proceeds.

The pricing details could be out on Dec. 1 with the trading debut commencing a week later on Dec. 8.

Singapore Sovereign Wealth Fund GIC Pte Ltd., Hillhouse Capital Advisors Limited, BlackRock Inc BLK, and three other investors have agreed to subscribe for close to $1.35 billion worth of  JD Health’s stock, as per Bloomberg.

Why Does It Matter: JD Health is on track to set a record for the largest healthcare sector IPO in Asia. It could overtake Japanese pharma company Otsuka Holdings Co OTSKY, which has held the record for almost a decade with its $2.3 billion IPO in 2010.

In June, parent company JD.com too opted for a secondary listing, which turned out to be Hong Kong’s largest first-time shares sale of 2020.

Price Action: JD shares closed at $89.82, 2.58% higher, on Tuesday.