New Century Healthcare debuts on HK exchange

New Century Healthcare－a Beijing-based pediatric, obstetric and gynecological healthcare provider－made its debut on the Hong Kong Stock Exchange on Wednesday, raising $114 million.

The company priced its shares at HK$7.36 (94 cents), the mid point of the HK$6.36-HK$8.36 per share price guidance it issued for the 120 million shares.

The group owns and operates three leading pediatric clinics in Beijing, including BNC (Beijing New Century) Children's Hospital, BNC Women's and Children's Hospital and BNC Harmony Clinic.

Its first hospital, BNC Children's Hospital, was established through a public-private-partnership arrangement with Beijing Children's Hospital (BCH) in 2002.

The company said in its prospectus it focuses on the provision of mid to high-end women and children's medical services and said it has accumulated in-depth expertise and experience in public-private partnership arrangements with public hospitals.

By providing hospital management consulting services, the company said it has accumulated operational knowledge and market information from multiple cities besides Beijing and increased its brand awareness.

New Century said its obstetric and gynecological services are complementary to leading pediatric services and enable it to offer one-stop integrated services and to achieve synergies.

According to market research agency Frost & Sullivan, the three medical centers ranked first in market share in 2015 in both the private pediatric healthcare market and the mid to high-end pediatric healthcare market in Beijing.

Currently there are 441 doctors in the group, among which more than 90 percent have obtained the attending physician title and above, possessing at least five years of pediatric outpatient service experience.

The group said it will strengthen its pediatrics and gynecology and obstetrics services.

It added that it will further expand its coverage in Beijing and other first-tier cities and enhance its ability to provide high-quality medical services, to build up a world-class medical service institution.

New Century said it will further benefit from China's second-child policy.