JD.com Plans to Spin Off Health Unit, List in Hong Kong

Chinese e-commerce retailer JD.com, Inc. is planning to spin off and list its health unit on the Hong Kong stock exchange, the New York-listed company said Monday.

The timing of such spin-off and listing will depend on market conditions and there’s no assurance as to when the process will be completed, according to the company.

JD Health plans to raise $2 billion, and the exact amount of funds raised will be determined during the roadshow after the hearing, local news reported. According to the regular listing process of the Hong Kong stock exchange, JD Health will ring the bell as soon as the end of November.

Spun off from JD.com in May last year, JD Health was ranked 224th in Hurun Global Unicorn List last year. What’s more, it’s also ranked 24th in the 2020 Hurun China Top 100 Private Health Enterprises with a market value of 48 billion yuan.

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In the fourth quarter of 2019, JD Health received $1 billion in Series A financing. Public information shows that in 2019, JD Health disclosed to the public that its business income was close to 10 billion yuan and was profitable.

JD Health is positioned as a digital-driven health management platform. Its main business includes pharmaceutical retail and internet medical services. At present, JD Health has core products and sub-brands such as JD Pharmacy, JD Internet Hospital, Smart Hospital, and JD Home Doctor.

JD.com, which is listed on the Nasdaq in New York, raised about $3.87 billion in its Hong Kong secondary listing earlier this year. Its US-listed shares fell nearly 2% in premarket trading following Monday’s announcement, Reuters said.

Several Chinese companies are putting off plans for US listings amid mounting political tensions between the world’s top two economies, while those listed in New York are seeking to return to exchanges closer to home.