Ping An Healthcare Tech to raise funds via HK float

Ping An Insurance Group Co, the mainland's biggest insurer by market value, is planning a Hong Kong IPO for its healthcare technology unit that could raise $2 billion, people with knowledge of the matter said.

A listing of Ping An Healthcare Technology - which provides platforms used by hospitals, insurers and pharmacies - could take place as soon as next year, according to the people.

The mainland insurer is talking to potential advisers about the planned share sale, the people said, asking not to be identified because the information is private.

Ping An Healthcare Technology raised $1.15 billion from investors including SoftBank Group Corp's Vision Fund in a series A funding round announced in February. It would join Good Doctor, another Ping An subsidiary that offers online medical consultations, in seeking to sell shares to fund its expansion.

Chen Qiaoshan, a medical analyst at Beijing-based market research consultancy Analysys, said: "The IPO would help the company further implement its artificial intelligence-enabled diagnosis function. The company, as an online traffic entry point, has attracted an extreme volume of treatment data, which can serve as the basis for AI training. As a result, its AI-enabled diagnosis function can be improved, empowering hospitals."

"Capital is favoring medical technology. This is probably the reason for the IPO. The company could (use the funds raised to) invest in AI, or robots," she said.

Good Doctor, which raised $1.1 billion in a Hong Kong IPO in April, has seen its stock price fall 31 percent since it started trading.

Deliberations are at an early stage, and details of the plan could change, the people said. A representative for Ping An declined to comment.

Any deal will add to the $32.5 billion of first-time share sales in Hong Kong this year, according to data compiled by Bloomberg.

Ping An Medical and Healthcare Management Co is known as a provider for services including expense control and medical-resource management, in more than 250 cities across China.

Bloomberg - China Daily