LinkDoc Technology Ltd. is counting down to its IPO, scheduled to close the short week this Friday on the Nasdaq. The Alibaba-backed health tech company is riding the wave of Chinese IPOs, seeking to raise up to $211 million under the stock ticker "LDOC."
The float of 10.8 million American depositary shares is expected to be priced at $17.50 to $19.50 per share. Considering the post-IPO slump of Didi Global (NYSE: DIDI) and the anti-Chinese-stock sentiment on the markets, LinkDoc will have to force its way through the bad timing.
Even the company's backing by the health unit of Chinese tech conglomerate Alibaba Group (NYSE: BABA; HKEX: 9988) may come as a negative aspect. Alibaba has been dealing with a lot of regulatory troubles since November 2020 that significantly weighed on its performance and Beijing's crackdown on its independent companies seems to have no end. If the app of ride-hailing titan Didi has been blocked by the authorities, any company, however large, may face the same fate on the whim of the watchdog.
Meanwhile, LinkDoc is also backed by an affiliate of Singapore's Temasek Holdings and has hired big banks to secure its IPO: Morgan Stanley, BofA Securities, and CICC. Also helping secure the deal is Tiger Brokers (NZ) and SNB Finance Holdings, according to the company's filing. Underwriters may purchase an additional 1.6 million ADSs upon the IPO as a greenshoe option.
LinkDoc claims to operate China's largest data-driven digital infrastructure for precision medicine. Having opened for business in 2014, the company is yet money-losing. In 2020, LinkDoc booked $143.7 million in revenues, up 89% year-over-year. Net loss widened 12% to $72.6 million, according to the filing. In the three months through March 2021, LinkDoc had $34.1 million in revenues on losses of $20.7 million.
The company first filed for a New York IPO in mid-June, saying it plans to use the new capital to boost R&D, bring more oncologists, data scientists, and other experienced professionals onboard, expand its patient care center network and service offerings, and pursue potential strategic investments and acquisitions.
Citing Frost & Sullivan in the prospectus, LinkDoc expects the Chinese healthcare services market to reach $1.4 trillion by 2030 compared to $657 billion in 2019. In this market, LinkDoc generates revenues from a number of channels, including research service fees, sales of innovative, auxiliary, and nutrition medications, contracts with medical associations for the patient management solutions, and clinical trial matching services.