Chinese oncology and radiotherapy firm Hygeia Healthcare is aiming to raise up to $400 million through a share listing in Hong Kong. The Shanghai-based healthcare service provider had filed a draft prospectus for its planned initial public offering (IPO) on Monday, joining a long list of companies taking advantage of the increased investor interest for medical-related stocks.
The decision to list its shares comes after a number of medical firms had successfully launched their IPOs in Hong Kong. Jiangsu-based medical device maker Peija Medical recently made its debut in the city-state back in mid-May. The IPO was oversubscribed more than a thousand times. Last week, two other Chinese healthcare firms, Kangji Medical and Immunotech Biopharm, had also submitted their listing documents.
Hygeia Healthcare, which is backed by Warburg Pincus LLC, has appointed Haitong International and Morgan Stanley as its IPO sponsors. Warburg Pincus currently owns a 17.2 percent stake in the Chinese firm, which operates a network of 10 oncology hospitals around China. Hygeia Healthcare also lists Citic Capital Holdings as one of its major shareholders, with the firm holding a 5.2 percent stake through its affiliates.
According to its listing documents posted on the Hong Kong Stock Exchange, Hygeia Healthcare provides more than 2,000 beds throughout its network, making it one of the largest oncology healthcare groups in the country. The company's listing document has since been redacted as it is reportedly still trying to negotiate the exact terms of the share sale.
The company has also not yet providing the exact details of when it would be listing its shares or its pricing but sources familiar with the matter claim that Hygeia Healthcare is likely aiming to raise between $300 million to $400 million through its IPO. The same sources also revealed that the company is aiming to list its shares in Hong Kong's main board by the end of July.
In terms of revenues generated from its radiotherapy-related services last year, the company is the country's largest provider by far. In 2019, the company reported revenues of over 1.09 billion yuan or roughly $153.9 million, a 42 percent increase compared to its revenues from the previous year. Hygeia Healthcare revealed that it had more than 940,000 patient visits last year, a 24 percent increase from the number of visits it reported a year earlier.
Hygeia Healthcare's hospitals mainly provide radiotherapy services to cancer patients. A report from consultant Frost & Sullivan, which was quoted in the company's filing document, revealed that incidences of cancer in the country are expected to reach more than 5.1 million by 2025.
