China’s Tencent-backed insurtech firm Waterdrop eyes $360m in US IPO

Photo: Reuters

Chinese online insurance technology firm Waterdrop Inc aims to raise up to $360 million in an initial public offering on the New York Stock Exchange, company filings show.

Waterdrop, which is backed by Tencent, will sell 30 million American Depository shares for between $10 and $12 each, it said in the filings with the Securities and Exchange Commission (SEC).

The shares will be priced on Thursday after the U.S. market closes, a term sheet for the deal obtained by Reuters shows.

Cornerstone investors have subscribed for $210 million worth of stock with Boyu Capital, one of the company’s existing major shareholders, taking $100 million in the deal already.

A so-called greenshoe, or over-allotment option, exists, to allow an extra 4.5 million shares to be sold.

In April, Reuters reported that the China Banking and Insurance Regulatory Commission (CBIRC), had questioned the company’s business risks, which has slowed the IPO process.

The Chinese regulator even told founder Shen Peng in April that it would not suggest that Waterdrop go public at that point, said one of the sources.

Beijing-headquartered Waterdrop distributes insurance policies online and provides illness crowd-funding. It was not immediately clear what exactly CBIRC felt was risky in its business.

At the time, Waterdrop denied in an emailed statement that Chinese regulators were opposed to its capital markets plan, adding that its senior managers were in regular communication with regulators.

Reuters

Singapore Reporter/s

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

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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.