JD Health to raise $4 billion in Hong Kong's largest IPO of 2020: sources

HONG KONG (Reuters) - JD Health, the healthcare arm of Chinese e-tailer JD.com Inc, aims to raise up to $4 billion in Hong Kong’s largest initial public offering (IPO) of 2020, three people with direct knowledge of the matter told Reuters.

The share sale, which starts on Wednesday, will help Hong Kong to its busiest year for IPOs and secondary listings since 2010 when issuers raised $57.39 billion, Refinitiv data showed.

Listings in Hong Kong so far this year have been worth $39.1 billion, versus $40.2 billion last year, the data showed.

JD.com announced plans in September to spin off what, in its draft prospectus, it called mainland China’s largest online healthcare platform.

Bookbuilding will open to institutional and retail investors on Wednesday, the people said, declining to be identified as the information was private.

Trading of the shares on the Hong Kong stock market is due to start in the second week of December, said a separate person with direct knowledge of the matter.

JD.com did not immediately respond to a request for comment.

The fundraising was first reported on Monday by IFR.

JD.com raised $4.4 billion through a secondary listing in June - Hong Kong’s largest deal so far this year. The city’s largest IPO of 2020 to date was that of China Bohai Bank Co Ltd at $2 billion in July, Refinitiv data showed.

JD Health’s listing reflects continued strength in Hong Kong’s capital markets after Ant Group’s $37 billion Hong Kong-Shanghai IPO was pulled this month.

China Evergrande Group is spinning off its property services business to raise as much as $2.04 billion in a Hong Kong listing, set to be priced on Thursday.

Liquid detergent maker Blue Moon, backed by Hillhouse Capital, is set to raise at least $1 billion by year-end having gained IPO approval after a listing committee hearing last week.

Short-video firm Kuaishou Technology has filed to conduct a Hong Kong IPO by January that could raise up to $5 billion.