Hong Kong: Guodan Healthcare plans Hong Kong IPO

Guodan Healthcare, the second largest private general hospital group in Guangdong, is planning an IPO on the stock exchange in Hong Kong.

It owns and operates a network of five private for-profit hospitals in Guangdong Province, four of which are general hospitals located in Shenzhen with Class I general hospital-equivalent scale and the remaining one is a TCM hospital located in Zhongshan City with Class I TCM hospital-equivalent scale.

Hospitals in the province are booming. According to Frost & Sullivan, the private market grew at 17.5% a year between 2014 and 2018 to hit revenues of Rmb28.2bn (US$3.9bn) and is expected to top Rmb60.4bn by 2023.

Funds raised will be used to upgrade healthcare services at its hospitals, expand services and for strategic acquisitions.

Profits for the first six months of the year stood at Rmb5.2m on revenues of Rmb98.9m.

Ample Capital is managing the deal.