Sickly IPO may infect Hong Kong waiting room

Ping An Healthcare and Technology Co

08/05/2018 02:38

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Alec Macfarlane
    HONG KONG, May 8 (Reuters Breakingviews) - The group behind
medical app Good Doctor fell below its float price on the second
day of trading. The diagnosis is simple: this was overpriced,
like other recent deals. With giants such as Xiaomi set to list,
bankers may want to leave more on the table to keep the market
healthy.

    Full view will be published shortly.
    On Twitter https://twitter.com/AlecMac11

    
    CONTEXT NEWS
    - Ping An Healthcare and Technology’s shares fell as much as
11 percent on May 7, their second day of trading. Shares in the
group, which spun out from Chinese financial services giant Ping
An, closed at HK$52.75 ($6.72) each, 3.7 percent lower than its
initial public offering price of HK$54.80. 
    - Founded in 2014, Ping An Healthcare and Technology runs
Good Doctor, an app that offers healthcare services in China,
including online consultations. 
    - The company raised HK$8.8 billion in its Hong Kong IPO,
roughly half of which came from cornerstone investors including
U.S. fund manager BlackRock, Singapore state investment fund
GIC, and Canada Pension Plan Investment Board. 
    - The offering was heavily oversubscribed after its first
day of book-building, Thomson Reuters publication IFR reported,
adding that the portion of shares reserved for retail investors
was more than 658 times oversubscribed. 
    - For previous columns by the author, Reuters customers can
click on  MAC/ 
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    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Ping An Good Doctor's shares slide below IPO price on valuation
worries     urn:newsml:reuters.com:*:nL3N1SE29D
Chinese tech stars are MAXD out beyond FANG stocks   
 urn:newsml:reuters.com:*:nL3N1SE16N
China’s Ping An peacocks for its tech feathers     urn:newsml:reuters.com:*:nL3N1S12WW
Ping An healthcare IPO looks pricey but fit     urn:newsml:reuters.com:*:nL3N1S01KC
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Quentin Webb and Katrina Hamlin)
 ((alec.macfarlane@thomsonreuters.com; Reuters Messaging:
alec.macfarlane.thomsonreuters.com@reuters.net))