New Century Healthcare Lists on HKEX, CDH Investments Reaps Multi-fold Returns

On January 18, New Century Healthcare, a private pediatric healthcare provider in China, was officially listed on the Hong Kong Stock Exchange under the stock code 01518. Headquartered in Beijing, New Century Healthcare is a private healthcare service provider specializing in women’s and children’s health. It operates three medical institutions: Beijing New Century Children’s Hospital, Beijing New Century Women’s and Children’s Hospital, and Beijing New Century Ronghe Clinic. In addition to providing specialized pediatric and obstetric/gynecologic services, the company also offers hospital consulting services. Its medical institutions target the mid-to-high-end healthcare market, catering to families with higher household incomes.

In 2006, New Century Healthcare Network’s first hospital, Beijing New Century Children’s Hospital, initiated its first collaboration with Beijing Children’s Hospital, Capital Medical University (hereinafter referred to as “Beijing Children’s Hospital”). The two hospitals leveraged their respective strengths to explore a Public-Private Partnership (PPP) model. Under this arrangement, Beijing Children’s Hospital dispatched a team of doctors and nurses to Beijing New Century Children’s Hospital, while the latter maintained an independent management system and operational autonomy. This model was later extended to Beijing New Century Women’s and Children’s Hospital. In November 2015, New Century Healthcare acquired Beijing New Century Women’s and Children’s Hospital and established a non-equity partnership with Beijing Obstetrics and Gynecology Hospital, under which doctors and nurses were seconded to Beijing New Century Women’s and Children’s Hospital. The success of this collaboration has been regarded by the industry as a benchmark for cooperation between public and private hospitals, leading to its replication across China.

New Century Healthcare was priced at HK$7.36 per share, with a final closing price of HK$7.35. The first-day trading volume amounted to HK$91.9433 million, and the total market capitalization at close reached HK$3.528 billion. New Century Healthcare is the third portfolio company of CDH Investments in the big health and medical sector to successfully go public. Among the five healthcare service companies listed on the Hong Kong Stock Exchange, three are backed by CDH Investments. Since its initial investment in Ciming Health Checkup in 2004, CDH Investments has entered a harvest period—with six portfolio companies going public, three exiting via transfers, and two entering the IPO process. With the listing of New Century Healthcare, CDH Investments has also achieved multi-fold returns.

Jason Zhou, Chairman and CEO of New Century Healthcare, stated that the company’s successful initial public offering will inject substantial capital strength into its future development, with a continued focus on pediatric and obstetrics/gynecology services. In Beijing, the company plans to open one new hospital and two clinics, as well as build a telemedicine diagnostic center and upgrade an existing surgical center. In other first-tier cities, New Century Healthcare also intends to open one new hospital and two clinics to expand its medical service capabilities and network.