WeDoctor IPO: what should you know?

Tencent-backed digital health platform WeDoctor is seeking to list its healthcare business in Hong Kong, with an up to US$10 billion IPO valuation.

  • WeDoctor might file for an IPO as soon as this month, says Bloomberg
  • The Chinese company’s latest valuation stands at around US$6.8 billion
  • Jefferies analysts like its ‘robust connection’ with hospitals and the government
  • However, it has heavy capex and is facing an increasingly strict regulatory environment
  • Trade an IPO using CFDs after the listing with an IG account

When will WeDoctor go public?

The long-awaited Hong Kong listing of WeDoctor’s healthcare services arm could take place soon.

Bloomberg reported that the Tencent-backed company might file an initial public offering (IPO) prospectus with the Hong Kong stock exchange as early as March 2021.

WeDoctor will split its business into two parts; the healthcare operations, covering online and on-the-ground consulting, will be going public. Meanwhile, the data business, which handles personal medical records, will be spun off and kept private, Bloomberg said.

The previous plan was for the IPO to take place around end-2020 and raise about US$500 million to US$1 billion. Reuters reported in March 2020 that WeDoctor could be valued at up to US$10 billion after the listing.

Rumours of a listing began in 2018, following a financing round that year which resulted in the telemedicine unicorn being valued at US$5.5 billion at the time.

Who is WeDoctor?

The group’s business segments include healthcare, insurance, cloud and artificial intelligence (AI), diagnostics, and pharmaceutical supply chain solutions.

Jefferies analysts said WeDoctor is heading towards building a closed healthcare circuit - which involves every aspect of the industry, including patients, physicians, hospitals, pharmacies, and insurers - while leveraging AI technology.

The company’s cloud business allows partner hospitals, clinics and government to do data processing, AI diagnosis, pension management and more.

Its other strengths include its extensive government partnership projects, a ‘robust connection’ with local public hospitals, and its first-mover advantage in both public reimbursement and commercial insurance connections, Jefferies noted. Moreover, WeDoctor in 2015 built China’s first internet hospital, Wuzheng Internet Hospital, providing online diagnosis and prescription services.

However, downsides lie in its heavy capital expenditure - the majority of WeDoctor’s businesses are self-operated or self-constructed, Jefferies said. The firm is also weak in its pharmaceutical e-commerce business, the research team added.

In addition, the company is navigating an increasingly strict regulatory environment in China, following government crackdowns on internet firms, Bloomberg reported.

Who are WeDoctor’s investors?

Besides Chinese tech giant Tencent Holdings and US investment bank Goldman Sachs, other investors in WeDoctor have included Sequoia Capital China and Millennium Management.

The latter two participated in the Hangzhou-based firm’s funding round in late 2020 which raised some US$400 million and boosted its valuation to US$6.8 billion.

Global alternative investment manager Investcorp last September announced it had acquired a minority stake in WeDoctor.

In the 2018 round, life-and-medical insurer AIA Group and Hong Kong construction and logistics conglomerate NWS Holdings led the US$500 million injection.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Get in on the action early

Everything you need to trade a company’s initial public offering (IPO), all in one place.

  • Explore IPOs, learn expected valuations and see company profiles
  • Speculate on a company’s market cap before its IPO with our grey markets
  • Invest with a share dealing account, or trade on price movements with spread bets and CFDs

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.