HONG KONG • Frenzied demand for Ping An Healthcare and Technology's initial public offering failed to translate into a strong debut.
The company, known as Good Doctor, closed unchanged in the worst first-day performance by a technology company on the city's main board since October 2014. That is after the company drew HK$373 billion (S$63.7 billion) of retail money in its IPO.
The weak start weighed on Hong Kong's stock market, with the Hang Seng Index falling 1.3 per cent.
Investors have grown used to instant profits from IPOs, with China Literature surging more than 80 per cent on its first day after completing a similar-size technology IPO in November. The question now is whether this will damp demand for Xiaomi, which is planning what may be the world's biggest IPO since 2014 in Hong Kong.
Good Doctor's performance is "a bit surprising" and hurts sentiment, said UOB Kay Hian (Hong Kong) executive director Steven Leung.
The share sale valued the company - a unit of China's biggest insurer by market value - at about six times projected 2020 sales, compared with 5.1 times for Internet giant Tencent and 5.4 times for US telehealth provider Teladoc, according to Bloomberg Intelligence.
Founded in 2014, the company was among several tech start-ups backed by China's Ping An Insurance Group. It delivers healthcare services such as online family doctors and health mall services through its mobile platform and has seen its revenue surge nearly seven times to 1.9 billion yuan (S$398 million) over the past three years.
It has a nationwide network of healthcare service providers covering 3,100 hospitals, 1,100 health check-up centres, 500 dental clinics and 7,500 pharmacy outlets.
"We are at the stage to acquire more traffic and change consumers' habit of seeing doctors and managing their health," Ping An Healthcare chairman Wang Tao said at the listing ceremony yesterday.
Good Doctor has secured seven cornerstone investors, including Singapore's sovereign wealth fund GIC and Canada Pension Plan Investment Board, it said in a filing last week.