JD Health’s IPO is the best by a mega Hong Kong debut
Shares of the health-care affiliate of Chinese e-commerce giant JD.com Inc. surged 56% ThursdayExcluding its Nasdaq-traded parent’s $4.5 billion secondary listing in Hong Kong in June, the health-care company’s share sale is also the largest in the city this year
JD Health International Inc.’s $3.5 billion float already made it Hong Kong’s largest initial public offering of the year. Now, the company has added another notch on its belt: having the best-ever Hong Kong debut among listings that have raised more than $3 billion.
Shares of the health-care affiliate of Chinese e-commerce giant JD.com Inc. surged 56% Thursday, beating the previous record held by Chinese broker GF Securities Co. which jumped 35% on its first trading day in April 2015, according to data compiled by Bloomberg.
JD Health’s IPO last week is Asia’s biggest health-care listing on record. Excluding its Nasdaq-traded parent’s $4.5 billion secondary listing in Hong Kong in June, the health-care company’s share sale is also the largest in the city this year.
The blockbuster deal and its subsequent first-day pop highlight show investors remain interested in health-care names amid the coronavirus pandemic. Health-care listings have been lapped up this year by institutional funds as well as mom-and-pop investors.
Driving the pipeline of listings have been high valuations and a wave of innovation in China’s health-care and biotech industries, partly accelerated by the pandemic as more people use online medical services.
JD Health’s strong performance also signals to prospective issuers that the window for IPOs is still open, after the abrupt suspension of Ant Group Co.’s record offering last month.
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