JD Health, the healthcare unit of Chinese ecommerce giant JD.com, is planning to raise around $1 billion by selling its shares on the Hong Kong Stock Exchange, the media reported.
Details of the size and timeline of JD Health’s IPO are subject to change, Bloomberg reported.
The company picked Bank of America and UBS Group as advisers.
Earlier this year, JD Health’s parent company JD.com raised $4.5 billion in its Hong Kong IPO.
Healthcare companies in Asia have raised around $12.7 billion through first-time share sales this year, higher than full-year tally of any of the past 12 years.
In the last couple of months, a number of healthtech and biopharmaceutical startups in China have also raised funding to either expand their business or improve their product offerings.
Earlier this week, China-based biotech firm Biocytogen raised around $142 million in its Series D funding round from CMB International.
Other existing investors that also participated in the funding round for Biocytogen include SDIC Venture Capital, Chinese insurance group China Life’s equity investment arm China Life Investment Holding Company, healthcare-focused 3E Bioventures Capital, and Shenzhen-based Cowin Capital.
Earlier this year, JD Health, raised more than $830 million from Hillhouse Capital in a non-redeemable Series B preference share financing, according to the company.
The deal is expected to be completed in the third quarter.
JD.com confirmed that it will remain the majority share holder in its health unit.
In a statement, JD.com said, “By leveraging Hillhouse Capital’s industry expertise and resources, JD Health will further strengthen its pharmacy supply chain capabilities and explore additional healthcare services opportunities in the broader healthcare sector.”
Last year, JD Health raised around $1 billion in its Series A funding round from its parent company JD.com.