Digital health medical service platform Health Road (02587.HK) recently launched its IPO offering, and will be listed on the Hong Kong Stock Exchange on December 30, 2024. CCB International is the sole sponsor, and Peak Capital serves as its financial advisor. Health Road plans to offer a total of 25 million shares globally, accounting for 2.85% of the total shares upon completion of the offering. Of this, 90% will be offered internationally and 10% under the public offering. The offering price per share ranges from HK$7.80 to HK$8.80, with 500 shares per lot, and the maximum proceeds will be approximately HK$220 million. Assuming the offering price is HK$8.30 (the midpoint of the offering price range), Health Road estimates its total listing expenses will be around HK$86.4 million, including 3% underwriting commission, 3% discretionary expenses, Hong Kong Stock Exchange (HKEX) listing fees, Securities and Futures Commission (SFC) transaction levy, HKEX transaction fees, Financial Services and the Treasury Bureau transaction levy, legal and other professional fees, printing and other expenses. Health Road's IPO has introduced 1 cornerstone investor, with Hengqin Industrial Investment Fund subscribing for RMB95 million (approximately HK$103 million) worth of offering shares. The net proceeds from Health Road's IPO will be approximately HK$121 million (calculated based on the midpoint of the offering price range): approximately 33.5% will be allocated to business development over the next three years, especially health medical services; approximately 27.0% will be used for business development over the next three years, especially enterprise services and digital marketing services; approximately 21.0% will be used for strategic investments or acquisitions; approximately 14.5% will be used for R&D; approximately 4.0% will be used for working capital and general corporate purposes. For this IPO, CCB International acts as the sole sponsor, global coordinator and joint global coordinator; Shenwan Hongyuan Hong Kong serves as the global coordinator and joint global coordinator. Other underwriters include BOC International, Livermore Securities, Fosun International Securities, Zhongtai International, Everbright Securities International, RHB Securities, Guotai Junan International, Shengli Securities, Futu Securities and Baihui Securities. KPMG is its auditor; Jingtian & Gongcheng and Paul Hastings serve as its PRC corporate counsel and Hong Kong and US corporate counsel respectively; Commerce & Finance Law Offices and Han Kun Law Offices serve as PRC underwriters’ counsel and Hong Kong underwriters’ counsel respectively; Frost & Sullivan is its industry advisor. According to the prospectus, in the post-listing shareholding structure of Health Road: Mr. Zhang Wanneng holds 33.71% of the shares through Fengji Holdings; Mr. Chen Yong holds 10.43% through Jiaman Group; Mr. Zhang Wande (brother of Mr. Zhang Wanneng) holds 9.23% through Meiyi Holdings; Mr. Hu Depan holds 1.99% through Meixuan Holdings; Ms. Zheng Shuxian holds 1.81% through Meixin Holdings; Ms. Chen Qin holds 3.17% through Xingda Holdings; Yuanjing (employee shareholding platform) holds 4.87%; Xingxing Venture Capital (employee shareholding platform) holds 4.25%; Mr. Leung Kam Wah holds 4.39% through Parkson Enterprises; Baidu (09888.HK) holds 12.10%; Ms. Shi Weimin holds 4.57% through Meizun Renhe; Shangrao State-owned Assets holds 2.53% through Hongdayuankang; Kequan Xiamen holds 2.37% through Kequan Holdings; Shanghai Jiajia holds 1.10% through Xingyi; Fuzhou Strait No.1 holds 0.63% through Strait No.1. Other public shareholders hold 2.85% of the shares. As a digital health medical service platform operating in China, Health Road is the 4th largest digital health medical service platform in China by the number of registered individual users on the platform as of December 31, 2023, and the 5th largest by revenue in 2023, according to data from Frost & Sullivan. As of June 30, 2024, the platform has 195 million registered individual users, 877,200 registered doctors, and connects 11,727 hospitals (including 1,494 tertiary hospitals). Link to the prospectus of Health Road: https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1218/2024121800024_c.pdf © 2021 Meishun (Hong Kong) Management Consulting Co., Ltd. and Meishun (Hangzhou) Management Consulting Co., Ltd. All rights reserved. Meishun Meiyin (Hangzhou) Consulting Management Co., Ltd. is a domestic subsidiary of Hong Kong Meishun Management Consulting Company under the same actual controller. Both companies are under the same actual controller, managed under the same Chinese management system, and comply with the laws of Hong Kong and mainland China.