HONG KONG, Dec. 8 (Xinhua) -- JD Health International Inc., the health care branch of e-commerce giant JD.com, made a strong debut on the Hong Kong stock market Tuesday.
Shares of JD Health opened at 94.5 Hong Kong dollars (12.19 U.S. dollars) Tuesday morning, up significantly from its offer price of 70.58 Hong Kong dollars. Its public offering had been oversubscribed over 420 times by local investors and over 30 times by global investors.
The company expects to raise 26.46 billion Hong Kong dollars by issuing 381.9 million shares. If the over-allotment option is exercised in full, the fund-raising will rise by another 3.98 billion Hong Kong dollars.
According to the prospectus, about 40 percent of the funds raised will be used for business expansion in areas including retail pharmacy business and online health care services, about 30 percent for research and development and the rest for potential investments and acquisitions or strategic alliances, as well as working capital and general corporate purposes.
JD Health is the largest online health care platform by revenue in China in 2019, recording a total revenue of 10.8 billion yuan (1.65 billion U.S. dollars) and with a market share of 29.8 percent, said the Frost & Sullivan Report.
JD.com started trading on the Hong Kong market in June as the third U.S.-listed Chinese mainland company that completed the secondary listing in Hong Kong. (1 USD equals 7.75 HKD) Enditem
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