(Bloomberg) – We Doctor Holdings Ltd. Inquiries about data management are sent from Hong Kong Exchanges and Clearing Ltd. As the Chinese healthcare startup is seeking an initial public offering in the city, according to people familiar with the matter.
The exchange operator requests confirmations from the company backed by Tencent Holdings Ltd. Its data processing practices comply with China’s rules, the people said, who requested anonymity because the information is not public. The people said the company is in talks with China’s cybersecurity watchdog over its data and is working to provide a written record of the discussion to prove it complied with the rules.
We were looking to hoist up to $3 billion in its initial public offering, which would make it one of the biggest first-ever equity sales in town this year.
People said the company, which filed in April, plans to provide updated earnings to HKEX and aims to list as soon as September, although the exact timing will depend on exchange approval as well as market conditions.
Our doctor declined to comment in an email statement.
Chinese companies looking to roll out public services overseas now confront intense scrutiny over their data security practices following Beijing launched a cybersecurity investigation into Didi Global Inc. A few days following it went public in the United States with a value of 4.4 billion dollars.
Since then, markets have swooned as the Chinese government unveiled proposals for tighter oversight of its companies’ foreign offerings, including requiring companies with data on more than a million users to apply for cybersecurity approval prior listing in another country.
The recent decline in technology stocks has made the Hong Kong market less receptive to IPOs in the sector. People familiar with the matter said that NetEase’s music streaming unit, on Monday halted receiving investor applications for its planned $1 billion initial public offering due to the volatility.
Since the start of July, Hong Kong’s Hang Seng Tech has fallen by 18%, while competitors We Doctor have also been hit firm. Ping An Healthcare and Technology Inc. fell 25% in the alike period, while JD Health International Inc. Decreased by 30%.
China is expanding its campaign to rein in its internet giants, in an attack that at one point wiped out more than $1 trillion in market value from Chinese company stocks. Investors were concerned about which sector might be next, which lowered valuations due to the regulatory burden.
We Doctor is a digital medical services platform that operates 27 so-called online hospitals, integrating online and offline medical services, according to the preliminary release. The Hangzhou-based company’s platform has an average monthly user count of 25 million users. Bloomberg News reported that We Doctor was valued at $6.8 billion following the latest funding round at the end of 2020.
(Updates with company information in paragraph 11.)
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