Deloitte assists JD Health to list on Main Board of Hong Kong
Hong Kong's largest new listing so far this year after JD.com
With "internet + healthcare" policies and technologies continuing to progress, exacerbated by the pandemic, Deloitte China successfully helped JD Health International Inc. (JD Health; 06618.HK) list on the Main Board of Hong Kong Stock Exchange on 8 December 2020.
As the reporting accountant of JD Health's Hong Kong listing, Deloitte China provided professional, high-quality audit services to JD Health, using our rich industry experience and outstanding service quality. On entering the Hong Kong capital market, JD Health will leverage Hong Kong's internationalized, diverse strategic landscape to become the go-to health management platform for everyone in China.
In its public offering, JD Health sold 380 million shares (excluding over-allotment shares) at an offer price of HKD70.58 per share. The total funds raised were approximately HKD27 billion. In terms of proceeds raised, this was Hong Kong's largest new listing year-to-date after the secondary listing of JD.com.
JD Health's first-day closing price was HKD110 per share, 56% higher than the offer price. This enabled JD Health's market capitalization to reach about HKD344 billion on its first trading day.
JD Health's successful listing makes it:
- The world's youngest unicorn*; and,
- The first Hong Kong-listed internet healthcare company from the Mainland to have recorded revenue of more than RMB10 billion in 2019 (as of the end of that year).
*Source: Suzhou New District · Hurun Global Unicorn Index 2020, August 2020.
(From left) Dong Cao, Chief Financial Officer, and Lijun Xin, Chief Executive Officer of JD Health
(From left) Gillian Chen, audit & assurance partner of Deloitte China; Jeffrey Fu, chief partner of Deloitte Touche Tohmatsu CPA LLP; Sandy Xu, CFO of JD.com and director of JD Health; Dong Cao, Chief Financial Officer of JD Health; Wei Zhang and Jason Zhang, audit & assurance partners of Deloitte China, attend the Hong Kong listing ceremony of JD Health.
This is the second IPO engagement Deloitte has completed for JD.com and its companies, following the secondary listing of JD.com in Hong Kong on 18 June 2020.
About the client
JD Health is dedicated to creating a technology-driven platform centered on the supply chain of pharmaceutical and healthcare products and strengthened by healthcare services, encompassing a user’s full lifespan and all their healthcare needs.
As early as February 2014, JD.com started to operate its medical and healthcare business separately. After a series of restructurings, JD Health was registered and established in the Cayman Islands on 30 November 2018. JD.com is the largest institutional shareholder of JD Health.
Jeffrey Fu, chief partner of Deloitte Touche Tohmatsu CPA LLP; Wei Zhang, Billy Chung, Jason Zhang, and Gillian Chen, audit & assurance partners of Deloitte China, led and worked on Deloitte's cross-functional team. They also worked with intermediaries to provide professional services to help the client list successfully.
With the company now listed, we sincerely look forward to the future development of JD Health. We are grateful for the tremendous cooperation and support JD.com and JD Health have given to Deloitte during the completion of this work. We thank each member of the JD Health engagement team for their efforts and dedication. We will continue to provide high quality, valued services to JD.com.
Deloitte China is dedicated to providing clients with professional, high-quality audit services, helping them continue to forge ahead in a challenging macro-economic and capital market environment. We also look forward to leveraging our experience and perspective in China and international markets to help more companies diversify their strategic layouts, expand their capital scale, and accumulate advantageous resources.
Firm has assisted in completion of six secondary listings
2020's largest financial IPO in the A-share market