Shares of JD Health have risen 34% above the Hong Kong stock market by 2020.
JD Health is an online spinoff that produces pharmaceutical and healthcare products for China’s second largest retailer at JD.com.
The stock opened at HK $ 94.50 (£ 9.13; $ 12.19), above the list price of $ 9.11.
The company raised $ 3.48bn and cost $ 29bn before it started trading.
JD.com will still maintain the number of JD healthcare providers, which will remain the service of the e-commerce giant.
The company hopes to raise money from China’s largest growing market for health services and medicines.
According to consultants Frost and Sullivan, China is the world’s second largest healthcare market, reaching $ 998bn in 2019.
What Is JD Health?
JD Health started out as an online product and healthcare product retailer, but has merged with other health services.
The company’s IPO prospects have shown that it has 72.5 million annual active users as of June 30, compared to 53.5 million at the same time last year.
It is one of China’s largest pharmaceutical retailers, selling both businesses and consumers, with a 30-minute drug delivery service to its users.
The company also offers a variety of online telemedicine services, including specialized medical services and traditional Chinese medicine.
JD Health launched an online primary care channel in August, with the aim of helping 50 million Chinese families in the next five years.
According to the prospectus, the company makes more than 80% of its revenue from medical and health care products.
However, the company said that in the first half of 2020, it had an average of 90,000 daily contacts online, a nearly sixfold increase from the same quarter in 2019.
JD Health is not the only JD.com category expected to be listed.
JD.com also has plans to list JD Digits, a consumer finance and supply company with a 37% stake.
The company also plans to list its management arm in the first half of next year, in the stock market which is expected to rise to $ 3bn.
Like many other e-commerce companies, JD.com saw strong growth during the epidemic.
The company’s revenue was $ 25.7bn in the third quarter of 2020, an increase of 29.2% over the same quarter in 2019.
Annual active customer accounts increased by 32.1% to 441.6 million in the 12 months ending September, according to JD.com.
A strong year for cash withdrawals in the stock market
The JD Health list comes with a particularly strong year of initial public offering (IPOs) in Hong Kong exchanges.
This prosperity is due in part to Chinese companies being listed on the US who want to be listed second in Hong Kong due to the ongoing trade tensions between China and the US.
JD Health’s parent company JD.com was among those companies. The listed New York company raised $ 4bn in the June census.
His rival Alibaba was also listed in Hong Kong late last year.
Yum China, which operates by KFC, Taco Bell and Pizza Hut in China, is also listed in Hong Kong in September.
However, at least one more listing effort in Hong Kong this year has gone awry.
The Chinese government pulled the plug on both Shang Shanghai and Hong Kong’s Ant Financial, which was expected to sell shares worth about $ 34.4bn (£ 26.5bn).
The company is backed by Jack Ma, the founder of JD.com’s billionaire e-commerce rival Alibaba.