Warburg-backed Chinese oncology healthcare firm Hygeia raises $286m in HK IPO

FILE PHOTO: A panel outside the Hong Kong Exchanges displays top active securities during morning trading in Hong Kong, China October 11, 2018. REUTERS/Bobby Yip

Hygeia Healthcare, a Chinese oncology healthcare group backed by US private equity major Warburg Pincus, raised HK$2.22 billion ($286 million) in an initial public offering (IPO) on the Main Board of the Hong Kong Stock Exchange (HKEX) on Monday.

Shanghai-based Hygeia sold 120 million shares at a price of HK$18.5 ($2.39) each, or the higher end of its price range of HK$17-18.5. Both the Hong Kong and international portions of the offering were heavily subscribed.

The company, which was started in 2009, had more than 940,000 patient visits in 2019 among its network of hospitals, a 24 per cent increase compared to one year earlier, shows its prospectus.

The offering was one of the most sought-after IPOs in Hong Kong this year as the public tranche of the deal attracted over 300,000 applications with over 600 times oversubscription, according to London-based law firm Clifford Chance, the legal adviser for the IPO.

Hygeia’s shares reached HK$27.7 ($3.57) at the highest price recorded throughout the debut day of June 29, about 40.54 per cent higher than the offer price. The company’s market capitalisation stood at HK$15.6 billion ($2.01 billion).

Before the offering, Hygeia obtained capital commitments from nine cornerstone investors, including Hillhouse Capital, China Southern Asset Management, Tiger Pacific Capital, OrbiMed Capital, and Lake Bleu Capital, for $143 million, or about half the size of the IPO.

Warburg Pincus, which held a 17.24 per cent stake in Hygeia, has made a partial exit and holds a 13.79 per cent stake in the firm after the IPO.

“Looking forward, we will expand our network of oncology-focused hospitals and radiotherapy centres to broaden our business scale and enlarge market share,” said Fang Min, chairman of the board and non-executive director of Hygeia, in a company statement released on the listing day.

He said that the company will also upgrade its existing in-network hospitals to improve service capacity and widen service offering, as well as improve the quality of healthcare services and further enhance brand awareness, among others.  

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.