Good Doctor lost the initial push on the stock market

05/05/2018

 

Good Doctor, the medical service app backed by Ping An Insurance, provides free diagnosis, treatment and online appointment booking

 

Good Doctor, formerly known as Ping An Healthcare and Technology Company, is an online medical and health care service platform which at the beginning had a market value of HK$58.5 billion (US$7.45 billion). Shares of Ping An Good Doctor recently close flat at IPO price of HK$54.8 even as benchmark index sheds 1.3pc on concerns over US-China trade talks.

 

Concerns over the outcome of US-China trade talks weighed on Hang Seng Index.

 

According to Wang Tao, group chairman of Good Doctor, the company has 180 million registered users and it is the largest online medical service platform in China. However, the company is not profitable yet. In 2017 the company reported a loss of 1 billion yuan, its third straight year of losses.

Wang Tao said he is confident: “The company is still in the early development phase of obtaining users and traffic. We want to build a one-stop online medical and health care platform and need to boost traffic and change user behaviour at the moment” he said.

Good Doctor had priced its IPO at the top end of the HK$50.80 to HK$54.80 range and in the company’s projects there is to use the IPO proceeds to expand its user base and focus on the growth of health care services.

According to Edmond Hui, chief executive officer at Hong Kong-based Bright Smart Securities, Hong Kong’s new listing rules will draw a flurry of listing applications from young companies. Therefore, even Xiaomi, one of China’s largest smartphone makers, filed for an IPO in Hong Kong.

Edmond Hui said: “I think we are going to see a hot IPO market in the next few months, with a number of tech unicorns coming to Hong Kong after Xiaomi”. Having regard to these forecasts, according to Good Doctor’s prospectus, around 40 per cent of the proceeds raised will be used for business expansion.

 

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