China’s Biggest Insurer, Ping An, Plans $2B IPO of Health Tech Unit


Ping An Insurance Group Co., China’s biggest insurer by market value, is planning a Hong Kong initial public offering of its health-care technology unit that could raise about $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 Chinese 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 A Health Technology Technology won $ 1.15 billion in an A-series funding round that was announced in February by investors, including SoftBank Group Corp.’s Vision Fund. To finance expansion, she would join Good Doctor, a separate Ping An affiliate offering online medical consultations, trying to sell them to shares.

The Good Doctor, who won $ 1.1 billion in Hong Kong IPO in April, dropped 31 percent from the bid price to Wednesday.

Negotiations are at an early stage and the details of the plan may vary, people said. One representative for Ping refused to comment.

Any deal will be added to the sale of a $ 32.5 billion first-time share in Hong Kong this year with data compiled by the Bloomberg show. Ping A Medical and Health Management Company provides services including cost control and medical resource management, while the unit is officially known.

The operating profit from Ping An oldu’s technology units was $ 5 million ($ 775 million), up eight times in the first nine months of the year. They accounted for about 6 percent of the total operating profit and surpassed contributions from Ping An’s brokerage branch and trust business.

Ping A Health Technology covers the medical data of more than 800 million Chinese citizens, the company’s deputy general manager Jessica Tan told investors in November last year. Tan helped local authorities in 250 Chinese cities reduce their health insurance spending by 10 percent on average, avoiding fraud.

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