Tencent-backed WeDoctor's Hong Kong IPO looms with valuation near US$7b

[HONG KONG] WeDoctor is planning to file for an initial public offering (IPO) in Hong Kong as soon as next month after fetching a valuation of US$6.8 billion in its latest funding round, according to people familiar with the matter.

The Tencent Holdings-backed company raised about US$400 million in a pre-IPO round from investors including Sequoia Capital China and Millennium Management at the end of last year, the people said. The company is in the process of hiring joint global coordinators, paving the way for a filing in as early as March, said the people, requesting not to be named because the matter is private.

Jeff Chen rejoined the company as chief strategy officer (CSO) looking after capital markets and the listing process following a stint at Singapore's Fullerton Healthcare Corp, they added.

WeDoctor is part of a growing contingent of technology giants trying to transform China's healthcare system. In preparation for the listing, the Hangzhou-based company is splitting its business into two parts, with plans to list its healthcare services operations, which include online and on-the-ground consulting, people familiar have said.

Its more sensitive data business that handles personal medical records will be spun off and kept private to comply with regulatory demands.

WeDoctor declined to comment on its fundraising and IPO plans in an emailed statement. It declined to comment on behalf of Mr Chen. Sequoia Capital China declined to comment in an email. A New York-based spokesperson for Millennium didn't immediately respond to an email seeking comment late Wednesday local time.

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Citigroup, JPMorgan Chase & Co and CMB International Securities are arranging the share sale, which was initially targeted for the end of last year. WeDoctor was seeking to raise US$500 million to US$1 billion through its listing at the time. The company is now in the process of hiring joint global coordinators, the people said.

The medical platform's operations span insurance policies, medical supplies, online appointment-booking and clinics. The national healthcare operator, which covers more than 95 per cent of the population, is working with the firm to provide insurance-covered healthcare.

WeDoctor operated 16 facilities and 30 online Internet hospitals, connecting 7,600 hospitals and 250,000 physicians as at October. It was valued at about US$5.5 billion in a 2018 funding round.

Mr Chen was former CSO at WeDoctor before he joined Fullerton Health as chief innovation officer and head of capital markets, according to an announcement in February 2019. WeDoctor's chief financial officer departed the company late last year.

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