Chengdu Quanyuantang Pharmacy Chain Joint Stock Co. has filed for a Hong Kong IPO, according to a report from Morningstar.
While Chengdu Quanyuantang did not disclose an offering size or a timetable for the IPO, it said it will use the funds from the share sale for investments and acquisitions and to improve its technological capabilities.
Haitong International Capital and Citigroup are the joint sponsors on the deal.
According to a report from healthcare internet media website VCBeat, Quanyuantang raised 500 million yuan in a funding round led by SIG and a "well-known medical industry investor” in late 2020.
The company, which operates 369 pharmacies and 38 online stores in China, joins a few others in the industry seeking Hong Kong IPOs. ClouDr, a provider of SaaS in China’s healthcare space has said to be in talks for an IPO of up to $500 million in either the U.S. or Hong Kong.
In April, WeDoctor filed for IPO. While the offering size is yet to be disclosed, 36Kr reported that WeDoctor could raise as much as $3 billion. Also, Bloomberg reported in May that the parent of pharmaceutical online retailer Miaoshou Doctor and LinkDoc Technology could both raise around $500 million each if they go public in the city.
In 2020, Chengdu Quanyuantang booked revenue of 1.25 billion yuan ($195.7 million) an increase from 858.2 million yuan in the previous year, according to its filing. However, it was not profitable in any of those years, as it made efforts to expand its pharmacy portfolio.
Chengdu Quanyuantang backers include research and development pharmaceutical conglomerate Sino Biopharmaceutical Ltd. (HKEX: 1177; OTC: SBMFF), and options trading giant Susquehanna International Group.