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Tencent affiliates IPO spree to continue into next year
Tencent-backed online healthcare service WeDoctor Group is planning a Hong Kong IPO in the coming new-year at a market valuation of $5 billion to $6 billion, SCMP is reporting. To prepare for the listing, the firm is now seeking a $500 million funding before mid-February in 2018.
Started as Guahao, an appointment-scheduling site for patients, in 2010, WeDoctor gradually scaled up to a platform that includes various medical-related services from online diagnosis and medical tips to rating hospitals and doctors. The firm rebranded itself to WeDoctor in 2015 after receiving $394 million Series C led by a consortium that includes Hillhouse Capital and Goldman Sachs with the participation of Fosun, Tencent, and China Development Bank Capital.
Tencent, as an early-stage investor of the WeDoctor, led a $100 million round in the startup in 2014. Since then, the firm’s service has been integrated into Tencent’s mobile apps like WeChat and Mobile QQ.
WeDoctor is the latest addition to Tencent’s recent initiative to get its affiliate companies listed. This year, the Shenzhen-based internet giant has seen three of its most valuable assets go public. Sogou, the search engine arm of Tencent, made its debut on New York Stock exchange last month. Its online reading unit China Literature has raised US$1.1bln after pricing its Hong Kong IPO at the top of its range early in November. China’s first online-only insurance company Zhong An, in which Tencent holds a stake, raised $1.5 billion in a Hong Kong IPO.
It seems that Tencent’s IPO wave is not going to stop in the coming new year. In addition to WeDoctor, Tencent is also planning an IPO for its music-streaming unit Tencent Music. The Wall Street Journal reported that the music group is in talks with Spotify on swapping stakes of up to 10% in each other’s businesses ahead of their expected public listings next year.
Aside from its affiliates, the tech tycoon itself is performing exceedingly well in the stock market recently, joining the half-a-trillion-dollar club in this past November.