JD Health plans to use part of Hong Kong IPO proceeds to buy offline pharmacies
- JD Health shares close at HK$110 each, 56 per cent above IPO offer price
- JD Health has recorded over 100,000 daily online consultations, up from an average of 90,000 per day during the first six months this year
JD Health, the health care arm of e-commerce giant JD.com, plans to use part of its listing proceeds to identify acquisition opportunities among the over 450,000 offline pharmacies in China, said chief executive Xin Lijun.
The internet will become the primary means of medical consultation and initial assessment in China in five years’ time, as the coronavirus pandemic has led to a lasting change to how ordinary citizens use medical services and aftercare.
.JD Health is looking to buy bricks-and-mortar pharmacies as users of its online medical consultation services are potential buyers of the drugs and health care products sold on its platform. An investment by JD Health would also help these pharmacies catch up with this digital trend.
“We could help some of the 450,000 offline pharmacies digitalise their operations through collaboration,” said Xin, at a press conference marking the firm’s HK$26.5 billion (US$3.4 billion) debut on the Hong Kong stock exchange Tuesday.
China’s online health care providers have tapped capital markets in droves this year as the coronavirus pandemic highlighted their growth prospects to investors.
