IPO | Tinker Bell Health is listed today and is expected to be listed on September 14.

Futu news on September 1st$DINGDANG HEALTH (09886.HK)$The company plans to issue 33.537 million shares from September 1 to September 6, including a public offering of 3.354 million shares and an international offering of 30.183 million shares at an issue price of HK $12 per share.

Tinker Bell Health, as a service provider of digital health care and health-to-home services in China, since its establishment in 2014, it has been promoting the transformation and upgrading of China's medical industry by creating online-to-offline solutions-led real-time pharmaceutical retail and medical consulting (including the operation of online platforms, offline smart pharmacies and fast drug services).

According to the Frost Sullivan report, Tinker Bell Health is the leading service provider in China's digital retail pharmacy industry by 2021 revenue, ranking third in the industry, with a market share of 1.0%. According to the Frost Sullivan report, the company is the largest provider of products and services in China's instant-to-home digital pharmacy industry by 2021 revenue, with a market share of 6.8%.

Tinker Bell Health has connected industry participants, including medical staff, pharmacies, pharmaceutical companies and other stakeholders across the value chain, to build a closed-loop ecosystem featuring a portfolio of healthcare products and services, technology-driven and user-centric. The company uses integrated online and offline operations to provide users with a full range of health care products and services, such as fast medicine, online diagnosis and treatment, and chronic disease and health management.

In terms of finance, from 2018 to 2021, the company's total income was 580 million yuan, 1.28 billion yuan, 2.23 billion yuan and 3.68 billion yuan respectively, with a compound annual growth rate of 84.62%. In the first three months of 2021 and 2022, the company's total revenue was 780 million yuan and 990 million yuan respectively, a year-on-year growth rate of 26.64 percent.

In terms of industry, the size of China's digital health market reached 467.4 billion yuan in 2021 and is expected to grow rapidly to 1.6 trillion yuan in 2025, with a compound annual growth rate of 35.2 percent from 2021 to 2025. The digital health market mainly includes digital retail pharmacy, online diagnosis and treatment, online consumer health care and medical information technology infrastructure.

In terms of transaction volume, the digital retail pharmacy market accounts for the largest proportion of the digital health market, with a turnover of 262.6 billion yuan in 2021 and is expected to reach 692.3 billion yuan in 2025, with a compound annual growth rate of 27.4% from 2021 to 2025.

In terms of fund-raising purposes, the company intends to use the net proceeds from the global sale of about HK $341.6 million for the following purposes: about 45 per cent is expected to be used for business expansion; about 15 per cent is used to optimize the company's technology systems and operating platforms; about 10 per cent is used to enhance the company's services and business; and about 20 per cent is used for potential investments and acquisitions or strategic cooperation in the value chain of the medical industry operated by the company. About 10% is used for working capital and other general corporate purposes.

As for cornerstone investors, the company has entered into cornerstone investment agreements with three cornerstone investors respectively. The three cornerstone investors are Sunshine Life Insurance Co., Ltd., Harvest International Premium Value (Secondary Market) Fund SPC and Jumpcan International Co., Ltd. Cornerstone investors have agreed to subscribe at the offering price for a total of US $36 million subject to a number of conditions.

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