Hong Kong: Honliv Healthcare launches HK$345m IPO

Honliv Healthcare, the owner of the second-largest for-profit private general hospital in China is looking to raise up to HK$345m (US$44.5m) in an IPO in Hong Kong.

A deal had been expected since the start of the year.

The company is selling 150m shares, or a 25% stake in the company, at an indicative price range of HK$1.80-HK$2.30. There is also a 15% overallotment option.

The group manages Henan Honliv Hospital based in Changyuan, Henan Province which has been in operation since 2006.

It has expanded rapidly over the past decade and now has 30 clinical departments, 13 medical technology departments and 1,500 beds.

Profits in 2018 stood at Rmb73.5m (US$10.6m) on revenues of Rmb496.6m. For the first nine months of 2019, Honliv Healthcare has profits of Rmb44.9m on revenues of Rmb400.7m.

IPO proceeds will be used to expand the business, to repay debt, to upgrade medical equipment and to develop its pharmaceutical supply chain business.

Bocom International is managing the deal.