IPO News | Health 160 (02656) closes its offering with a margin of over HK$25.2 billion, overbought 504 times

The Zhitong Finance App learned that the Chinese pharmaceutical and health products wholesaler Health 160 (02656) has closed its stock offering. According to comprehensive data from various brokerage firms, as of September 12, Health 160 had recorded a margin subscription amount of at least HK$25.24 billion. Based on the public sale, which raised HK$50 million, the purchase was overbought by 503.8 times.

Health 160 will conduct a stock offering from September 9 to 12. It is expected to be listed on September 17. Shenwan Hongyuan Hong Kong and ZTE Capital are co-sponsors. The company plans to sell 33.65,500 shares globally, with the Hong Kong public offering accounting for about 10%, international sales accounting for about 90%, and an additional 15% over-allotment rights. The sale price was HK$14.86 per share, raising capital of approximately HK$500 million, 250 shares per lot, and HK$3752.5 in the first hand.

Health 160 does not have a mandatory reimbursement mechanism. The overall coordinator can increase the number of publicly offered shares at their discretion, increasing the total number of publicly sold shares to 5,04675 million shares, which is equivalent to 15% of the initial issuance volume. Health 160 did not introduce any cornerstone investors in its current IPO.

Health 160 anticipates that 40% of the net proceeds will be used to expand the coverage of medical resources, increase platform traffic, and 30% will be used to strengthen R&D capabilities, including expanding internal R&D teams, upgrading IT infrastructure, and establishing 160 Internet Medical Research Institute, 10% for strategic cooperation and acquisition, targeting service providers in the health service value chain, and 10% for working capital and general corporate use.

According to the prospectus, Health 160 is an experienced Chinese wholesaler of pharmaceutical and health products and a leading integrated digital medical service provider. The company provides customers with a variety of medical and health products, as well as comprehensive digital healthcare solutions. In addition, the company also provides digital healthcare solutions through the Health 160 platform, an online healthcare service platform, which empowers all platform participants in the entire healthcare industry chain.

As of March 31, 2025, the Health 160 platform has connected more than 44,600 healthcare institutions since its inception, including more than 14,400 hospitals (including 3,430 tertiary hospitals) and more than 30,200 primary healthcare institutions. As of the same date, more than 6,800 private institutions among the company's cooperating healthcare institutions mainly provided consumer medical services, such as dental, ophthalmology and physical examination services, on the company's platform.

On the financial side, for the three months ended March 31 in 2022, 2023, 2024 and 2025, the company's revenue was approximately $526 million, 629 million yuan, 621 million yuan, and 100 million yuan respectively; during the same period, the year/period losses were approximately 120 million yuan, 106 million yuan, 108 million yuan, and 171.28 million yuan.