China's largest online chronic disease management platform Fangzhou Jianke (06086.HK) recently launched its IPO prospectus, and is expected to be listed on the Hong Kong Stock Exchange on July 9, 2024, with Citigroup and Agricultural Bank of China International acting as joint sponsors. Fangzhou Jianke plans to offer a total of 23.8 million shares globally (accounting for 1.78% of the total shares after the completion of the offering), of which 90% will be offered internationally and 10% will be offered to the public, There is also a 15% over-allotment option. The offering price per share ranges from HK$7.60 to HK$8.36, with 500 shares per lot, and the maximum fundraising amount is about HK$199 million. Assuming the offering price per share is HK$7.98 (the midpoint of the offering price range) and the over-allotment option is not exercised in full, Fangzhou Jianke expects total listing expenses to be about RMB 115.7 million, including 8% underwriting commission, 6% discretionary bonus, Hong Kong Stock Exchange listing fees, Securities and Futures Commission transaction fees, Hong Kong Stock Exchange transaction fees, Financial Services and the Treasury Bureau transaction fees, legal and other professional fees, printing and other expenses, etc. Fangzhou Jianke did not introduce cornerstone investors for this IPO. For this IPO of Fangzhou Jianke, assuming the offering price is set at the midpoint, the net fundraising proceeds will be about HK$63.07 million: about 67.4% will be used for business expansion in the next three to five years; about 16.0% will be used for R&D activities in the next five years; about 11.6% will be used for potential investments, acquisitions or strategic alliances of other stakeholders in the online chronic disease management industry value chain by the Group; about 5.0% will be used as the Group's operating funds and general corporate purposes. For this IPO of Fangzhou Jianke, Citigroup and Agricultural Bank of China International serve as joint sponsors, global coordinators and joint global coordinators. Essence Securities International (global coordinator), ICBC International and China Galaxy International serve as joint global coordinators, other underwriters include Everbright Securities International, China Merchants Securities International, Jucheng Securities, China Merchants Bank International, Fosun International Securities, GF Securities, Huatai International, Longbridge Securities, Shenwan Hongyuan, Zhongtai International, Futu Securities, Tiger Brokers, Victory Securities and Yuexiu Securities. According to the prospectus, in the post-listing shareholding structure of Fangzhou Yunkang, its controlling shareholder Mr. Xie Fangmin and Mr. ZHOU Feng are concert parties and will jointly control about 57.34% of the voting rights through voting proxy agreements and other arrangements; the Crescent Point investment entities controlled by Mr. David McKee Hand hold a total of 32.64% of the shares (among which the 10.33% voting rights of Tech-Med are authorized to the controlling shareholders); the restricted share unit platform holds 7.33% of the shares; HBM Healthcare holds 4.36% of the shares through Trident 2 Healthcare (S) Pte. Ltd.; GIG Hong Kong Limited holds 2.11% of the shares; Mr. Zou Yuming and his wholly-owned Torano Investments Limited hold a total of 1.75% of the shares; Mr. Lin Li holds 1.05% of the shares through Liansheng Hanhai; Volcanics Venture Fund, L.P. holds 0.84% of the shares; Mr. Lawrence Harding holds 0.49% of the shares through Prime Orient Holdings Ltd.; Malus Holdings holds 0.40% of the shares through CTCB Holdings Limited; Henderson International (03389.HK) holds shares through ATI Opportunities (Nevis) . Public shareholders hold 1.78% of the shares. Founded in 2015, Fangzhou Yunkang focuses on chronic disease management (including hypertension, cardiovascular diseases, respiratory chronic diseases, etc.), providing comprehensive chronic disease management services, through the Jianke platform providing integrated medical services and online retail pharmacy services. According to data from CIC Consulting, in terms of average monthly active users in 2023, Fangzhou Yunkang is China's largest online chronic disease management platform. In 2023, in terms of total prescription drug transaction value, Fangzhou Yunkang also ranked first in China's business-to-consumer chronic disease management market. https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0628/2024062800042_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 Company is the domestic subsidiary of Hong Kong Meishun Management Consulting Company under the same actual controller. Both companies have the same actual controller, are under the same Chinese management, and comply with Hong Kong and domestic laws.