Ping An Plans $2 Billion IPO of Health Tech Unit: Sources

(Bloomberg) — 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 An Healthcare Technology raised $1.15 billion from investors including SoftBank Group Corp.’s Vision Fund in a series A funding round announced in February. It would join Good Doctor, a separate Ping An subsidiary that offers online medical consultations, in seeking to sell shares to fund expansion.

Good Doctor, which raised $1.1 billion in a Hong Kong IPO in April, has fallen 31% from its offer price through Wednesday.

Deliberations are at an early stage, and details of the plan could change, the people said. A representative for Ping An declined to comment.

Any deal will add to the $32.5 billion of first-time share sales in Hong Kong this year, data compiled by Bloomberg show. Ping An Medical & Healthcare Management Co., as the unit is formally known, provides services including expense control and medical-resource management.

Operating profit from Ping An’s technology units jumped eightfold in the first nine months of the year to 5.4 billion yuan ($775 million). They accounted for about 6% of total operating profit, surpassing contributions from Ping An’s brokerage arm and trust business.

Ping An Healthcare Technology covers the medical data of more than 800 million Chinese citizens, its parent company’s deputy chief executive officer, Jessica Tan, told investors in November last year. It has been able to help local governments in 250 Chinese cities reduce medical insurance expenditures an average 10% by preventing fraud, Tan said at the time.

Contact editor Yang Ge (geyang@caixin.com)