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Tencent Holdings-backed WeDoctor has revived its Hong Kong initial public offering (IPO) plan, confirming an earlier report in the Post.
The Hangzhou-based online healthcare platform submitted its IPO application to Hong Kong's stock exchange on Tuesday without disclosing the fundraising size and timetable. Earlier this month, sources said the company expected to raise US$400 million to US$500 million and hoped to complete the listing by June. This would be its second attempt to go public since 2021.
Founded in 2010 by Jerry Liao and his team, WeDoctor became China's largest provider of artificial intelligence (AI)-enabled healthcare solutions by revenue in 2023. Its pre-IPO investors include Hillhouse Investment, HongShan Capital Group, AIA, Hermitage Capital, CICCFH Investment Management and Qiming Venture Partners.
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WeDoctor is riding a healthcare wave, which deal makers say will prop up the city's IPO market next year. Healthcare and pharmaceutical companies accounted for 27 per cent of the 90 active listing applications that the exchange received this year, according to data compiled by Deloitte.
"We aim to address the growing demand for AI-enabled healthcare solutions in China while supporting our sustainable growth and profitability through several strategic initiatives," WeDoctor said in its application.
According to market research firm Frost & Sullivan, China's AI-enabled healthcare solutions market is expected to grow at a compound annual growth rate of 46.2 per cent to to 138.7 billion yuan (US$19 billion) in 2030 from 9.7 billion yuan in 2023.
For the first six months of 2024, WeDoctor's revenue more than doubled to 1.82 billion yuan from 876.5 million yuan a year earlier thanks to "the continued expansion of our health management membership services". For the same period, its adjusted loss halved to 127.9 million yuan from 257.3 million.
In 2021, WeDoctor filed for a Hong Kong IPO, but Beijing's sweeping crackdown on the country's private sector disrupted many offerings, particularly companies dealing with sensitive data like medical information.
China Merchants Bank is the sole sponsor of WeDoctor's latest listing. The company said it will use the IPO proceeds to expand its partnership model in China, elevate AI technologies and applications, improve service quality and management efficiency, and fulfil its working capital needs.