By Joanne Chiu
JD Health International Inc., an online health-care business controlled by Chinese online retailing giant JD.com Inc., has begun taking orders for a 26.95 billion Hong Kong dollars ($3.5 billion) initial public offering in the city.
The company on Wednesday kicked off book building by offering 381.9 million shares at an indicative price range of HK$62.80 to HK$70.58 each, representing 12.2% of its enlarged share capital, according to a term sheet seen by The Wall Street Journal.
The stock offering will give JD Health a valuation of up to $28.5 billion ahead of a listing on Dec. 8.
A total of six cornerstone investors, which include the investment arm of Singapore government, Blackrock, Tiger Global and Hillhouse, will take up to $1.35 million or more than one-third of the stock sale at whatever the deal is priced.
The size of the IPO could increase to up to $4 billion if underwriting banks exercise an option to buy 15% more stock.
It plans to fix the offering price on Dec. 1 for the deal, which is being led by units of Bank of America Corp. , Haitong International Securities Group Ltd. and UBS Group AG.
Write to Joanne Chiu at email@example.com
(END) Dow Jones Newswires