Yonghe Medical Group Co., Ltd. (“Yonghe Medical”; Stock Code: 02279.HK) completed its IPO and listing on the Main Board of the Hong Kong Stock Exchange (HKEX) on December 13, 2021. The company offered 94.424 million shares at HK$15.80 per share, raising nearly HK$1.5 billion to expand and upgrade its existing transplant clinics, make further innovations in products and services, invest in R&D and integrate industrial resources in China. The IPO attracted 10 key cornerstone investors for subscription: NCC Fund (NCC Capital), Lake Bleu Prime, Hudson Bay, LAV Star Funds, E Fund, WT Capital, Enreal and Forreal Funds, IvyRock, Athos Capital and York Asian Opportunities. Over-subscribed 160 times, it was the hottest IPO in late 2021.
The listing of Yonghe Medical on HKEX marks that it has become China's first hair transplant company to be listed on HKEX and has taken a new step in asset securitization and internationalization.
Founded in 2005, Yonghe Medical (02279.HK) is a leading medical group in China specializing in providing hair-related healthcare services. The company offers one-stop hair-related healthcare services covering hair transplant, medical hair care, routine hair restoration and other ancillary services. Among all hair-related healthcare service providers in China, the company ranked first in terms of the number of registered physicians at the end of 2020, the number of clinics in operation at the end of 2020, and the number of hair transplant patients for 2020, according to Frost & Sullivan. Now the company has 53 clinics in 52 cities nationwide, making it the largest and most extensive hair transplant clinic chain in China.
As the Chinese legal adviser to the co-sponsor and the underwriter, Jingtian & Gongcheng's legal team provided comprehensive and full-process legal services for the IPO and listing of Yonghe Medical, including conducting Chinese legal due diligence, assisting in third-party legal due diligence, paying visits, assisting in analyzing and addressing key legal problems, participating in the preparation of listing application documents and assisting in answering inquiries from the regulator, and overcame difficulties caused by the COVID-19 to successfully finish the IPO-related legal work, gaining unanimous recognition from the client and intermediaries.
