By Joanne Chiu
The telemedicine arm of Chinese e-commerce giant JD.com Inc. is set to raise $3.5 billion after pricing the offering at the top end of the indicative range, ahead of a listing in Hong Kong,
JD Health International Inc. fixed the offer price at HK$70.58 each, or $9.10, for its initial public offering in the city, according to a term sheet seen by The Wall Street Journal.
The offer price, at the top end of a previously announced indicative price range of HK$62.80 to HK$70.58, will give the company a valuation of $28.5 billion. It will also become the city's largest IPO for 2020.
The pricing came after the Beijing-based company closed its book for the international tranche Monday, a day ahead of schedule. Trading of the stock will begin Dec. 8.
The deal by JD Health will help boost proceeds from Hong Kong IPOs and secondary listings to a 10-year high, even after the sudden suspension of Ant Group Co.'s blockbuster listing earlier this month.
Solid demand for JD Health's IPO underscores Hong Kong's status as a major fundraising hub for Chinese companies, amid strained relations between China and the U.S., as policy makers have sought to step up financial scrutiny on New York-listed Chinese companies.
JD Health's fundraising size could increase to up to $4 billion if underwriting banks exercise an option to buy 15% more stock. The deal is led by units of Bank of America Corp., Haitong International Securities Group Ltd. and UBS Group AG.
Write to Joanne Chiu at Joanne.chiu@wsj.com
(END) Dow Jones Newswires
12-01-20 2113ET