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Exits, Private Equity

CDH-Backed New Century Healthcare Completes $102M Hong Kong IPO

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One of two New Century Healthcare's children's hospitals in Beijing

New Century Healthcare, a children’s and women’s hospital operator backed by Chinese alternative investment firm CDH Investments, has completed a listing on the Hong Kong Stock Exchange today.

The Beijing-based hospital group has raised around HK$789 million (US$102 million) via the initial public offering. It plans to use the proceeds to open more hospitals and clinics in China’s major cities.

“New Century Healthcare is one of the biggest children’s hospital operator in China,” said Huang Jingjing, a managing director at CDH’s innovation and growth fund. “It is a great addition to China’s public hospitals and fills a market void meeting demand from high-end clients.”

Founded in 2002, New Century Healthcare currently operates two children’s and women’s hospitals and one clinic in Beijing.

CDH Investments, which previously invested in Ciming Health Checkup Group, Luye Pharma Group Ltd. and a number of healthcare firms in China, held a 16.6% stake in New Century Healthcare before the IPO.

New Century Healthcare recorded earnings of RMB238 million, RMB249 million and RMB258 million from 2013 to 2015, respectively.

At the same time, CDH Investments confirmed to Chinese media that it has completed raising a dual-currency innovation and growth fund with total commitment of RMB5.7 billion. The fund includes a RMB3.35 billion RMB-denominated vehicle and a US$340 million U.S. dollar-denominated fund.

This new investment vehicle will focus on healthcare, technology, media and telecommunications sectors, as well as consumer upgrade themes in China.

China Money Network reported last week that CDH Investments had closed its China mid-market fund at the hard cap of US$800 million in total commitments.

CDH Investments did not immediately respond to a China Money Network inquiry to confirm if the dual-currency fund and the mid-market fund are the same vehicle.

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