JD Health prices shares at $HK70.58, raises $3.48 bln in HK's biggest IPO in 2020 - term sheet

Nongfu Spring

02/12/2020 24:35

HONG KONG, Dec 2 (Reuters) - JD Health International Inc
 6618.HK  has priced its shares at HK$70.58 ($9.10) each and
raised about $3.48 billion in Hong Kong's biggest initial public
offering (IPO) this year, according to a term sheet.
    The company, a unit of e-commerce giant JD.com  JD.O 
 9618.HK , did not immediately respond to a request for comment.
    At $HK70.58 each, the top of the HK$62.80 and HK$70.58 range
flagged by the company when the IPO launched last week, JD
Health will be valued at nearly $29 billion.
    The company sold 381.9 million shares, which is 12.2% of JD
Health's enlarged share capital. A greenshoe option can be
exercised within a month to sell a further 15% of stock, which
would take the size of the IPO up to $4 billion.
    This is the largest IPO in Hong Kong in 2020, followed by
China Bohai Bank's  9668.HK  $2.05 billion IPO in July, and sets
the tone for its capital markets to end the year on a high note.
    The JD Health float will take Hong Kong's IPO proceeds to
over $25 billion in 2020, from more than 100 individual deals,
putting it on track to record the best year in a decade,
Refinitiv data shows. The value reaches $39.1 billion, including
secondary listings in the city.
    JD.com's secondary listing in June that raised $4.4 billion
was the largest for Hong Kong this year.  urn:newsml:reuters.com:*:nL4N2DO0G7
    The proposed high valuation for JD Health shares prompted
some investors to buy cheaper stocks of major rival Alibaba
Health Information Technology  0241.HK  during the JD bookbuild,
a fund manager source told Reuters.
    Alibaba Health's share price rose about 10% to HK$22.2
apiece last week while the JD Health deal was underway. 
 ($1 = 7.7521 Hong Kong dollars)

 (Reporting by Scott Murdoch and Kane Wu in Hong Kong; Editing
by Himani Sarkar)
 ((Scott.Murdoch@thomsonreuters.com;))