JD.com’s digital well being unit raises $ three.5 billion in its Hong Kong IPO

Several boxes of goods purchased from JD.com are stacked on the floor.

Zhang Peng | LightRocket | Getty Images

GUANGZHOU, China – JD Health, the health unit of Chinese e-commerce giant JD.com, raised $ 3.5 billion through an IPO in Hong Kong, according to CNBC.

The company issued 381.9 million shares at a price of Hong Kong dollars 70.58 ($ 9.11) per share, according to a person familiar with the matter. That was on the high end of Hong Kong $ 62.8 to Hong Kong $ 70.58 that was marketed to investors, the person said.

JD Health stock is expected to open on December 8th.

Bloomberg first reported on the details of the IPO.

The listing marks another big win for the Hong Kong Stock Exchange, where major Chinese tech companies gather to raise funds.

JD Health’s parent company, JD.com, conducted a secondary listing in Hong Kong in June. Another Chinese internet company, NetEase, also made a secondary listing in Hong Kong in June.

JD.com owns approximately 78% of JD Health. The latter’s business focuses on online health services such as consultations with doctors, as well as the online pharmacy. JD Health posted sales of 8.78 billion yuan ($ 1.34 billion) for the six months ended June 30, compared to 4.99 billion yuan for the same period last year.

China’s tech giants accelerated their foray into digital healthcare following the coronavirus outbreak earlier this year. Internet search giant Baidu is in talks with investors to raise up to $ 2 billion for a new biotech company within three years, CNBC reported in September.

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