CDH-backed New Century Healthcare completes US$102 million Hong Kong IPO

Thu Jan 19, 2017 - 6:34am GMT+0000

New Century Healthcare, a Beijing-based pediatric, obstetric and gynecological healthcare provider backed by Chinese alternative investment firm CDH Investments, has on Wednesday completed a listing on the Hong Kong Stock Exchange.

The company shares were priced at HK$7.36 (US$0.94), that is at the midpoint of the share price guidance it issued for the 120 million shares which were within the range of HK$6.36 to HK$8.36

The hospital group has raised around HK$789 million (US$102 million) via the initial public offering in which it plans to use to open more hospitals and clinics in China’s major cities.

Specifically, the healthcare firm will further expand its coverage in Beijing and other first-tier cities and enhance its ability to provide high-quality medical services, to build up a world-class medical service institution.

“New Century Healthcare is one of the biggest children’s hospital operator in China,” said Huang Jingjing, a managing director at CDH’s innovation and growth fund. “It is a great addition to China’s public hospitals and fills a market void meeting demand from high-end clients.”

Founded in 2002, New Century Healthcare currently owns and operates three leading pediatric clinics in Beijing, including Beijing New Century (BNC) Children’s Hospital, BNC Womesn’s and Children’s Hospital and BNC Harmony Clinic.

The company said in its prospectus it focuses on the provision of mid to high-end women and children’s medical services and said it has accumulated in-depth expertise and experience in the public-private partnership arrangement with public hospitals.

Currently, there are 441 doctors in the group, among which more than 90 percent have obtained the attending physician title and above, possessing at least five years of pediatric outpatient service.

CDH Investments, which previously invested in Ciming Health Checkup Group, Luye Pharma Group Ltd. and a number of healthcare firms in China, held a 16.6% stake in New Century Healthcare before the IPO.

New Century Healthcare recorded earnings of RMB238 million, RMB249 million and RMB258 million from 2013 to 2015, respectively.

By Vivian Foo, Unicorn Media