New Frontier Prepares for China IPO After New York Delisting
What’s new: New Frontier Health Corp., owner of the United Family Healthcare chain of hospitals and clinics in China, is preparing for a flotation in Hong Kong or Shanghai after delisting from the New York Stock Exchange, sources familiar with the matter said.
The Beijing-based company is moving closer to a fundraising in advance of a Chinese initial public offering (IPO) and is considering a listing on Shanghai’s tech-savvy STAR Market or the Hong Kong exchange by the end of the year, sources told Caixin Friday.
New Frontier said last week that it received an offer to be bought out by a consortium of investors in a deal that values it at nearly $1.72 billion.
Why it matters: New Frontier is joining a parade of Chinese companies listed in the U.S. that have sought alternative venues in the face of toughening U.S. rules targeting Chinese enterprises amid rising tensions. A New Frontier employee said the decision partly reflects the company’s concern that it has been under-valued on the U.S. bourse.
New Frontier Health was formed after blank-check company New Frontier Corp. acquired United Family Healthcare, one of the largest private health-care service operators in China, in 2019 for $1.4 billion from private equity firm TPG and Shanghai Fosun Pharmaceutical Group Co. Ltd.
New Frontier reported a net loss of 298 million yuan ($46 million) on revenue of 1.6 billion yuan during the 2020first nine months. The company attributed the losses to rising investment in health-care facilities.
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