Citi replaces Credit Suisse on WeDoctor IPO top role

Hong Kong

CITIGROUP has been picked for a top role on WeDoctor's Hong Kong initial public offering (IPO), replacing Credit Suisse Group, according to sources. Citi will now work alongside JPMorgan Chase & Co and CMB International Securities to lead the share sale of one of China's top online healthcare startups, the sources said.

An IPO of WeDoctor, backed by Tencent Holdings, was expected to happen before the end of the year, sources have said. The startup aims to raise between US$500 million and US$1 billion, a source has said.

Details of the share sale including size and timeline could still change as deliberations continue, they said. Representatives for WeDoctor and Citi declined to comment.

Credit Suisse was dealt a fresh blow to its business taking companies in the region public after being named in a lawsuit alongside fellow underwriters of Luckin Coffee's US share sale. Luckin said last week that its chief operating officer and some of its employees may have fabricated billions of yuan in sales.

Healthcare IPOs are expected to have a higher chance of success than those involving companies in sectors that have been hit hard by the Covid-19 outbreak, from aviation to retail and tourism. Shares of Ping An Healthcare and Technology Co, which runs the Ping An Good Doctor app, have surged 52 per cent in Hong Kong this year.

WeDoctor joins a growing contingent of tech giants hoping to revolutionise the traditional healthcare industry after the pandemic underscored its shortcomings.

The startup, whose business ranges from insurance policies and medical supplies to online appointment-booking and clinics, was valued at around US$5.5 billion in a 2018 funding round. BLOOMBERG