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Key Takeaways:
Top-rated non-public traditional Chinese healthcare service provider Beijing Tong Ren Tang Healthcare has kicked off its IPO, aiming to raise up to HK$897.7 million
The company plans to acquire and build 10 medical institutions by 2029 to drive growth of its healthcare network
China's aging population is boosting demand for services like chronic disease and long-term health management, as well as rehabilitation therapies, providing a big business opportunity for traditional Chinese medicine (TCM) practitioners. As one of China's oldest medical names with over 350 years of history, Tong Ren Tang looks well positioned to cater to such demand from consumers drawn to its brand by not only nostalgia, but its deep knowledge of TCM.
Beijing Tong Ren Tang Healthcare Investment Co. Ltd. (2667.HK) is banking on demand from that and other groups to attract investors to its Hong Kong listing plan. The company launched the IPO on March 20, aiming to sell 108 million shares for between HK$7.30 and HK$8.30 each, raising net proceeds of HK$844 million ($108 million) at the middle of that range. The stock is set to make its trading debut on March 30. In its transition from "time-honored brand" to "integrated healthcare services provider," the company is targeting the entire Chinese population, and finding big business in long-term repeat patients, who often include the elderly and people with chronic conditions.
Unlike other companies from the Tong Ren Tang family, Tong Ren Tang Healthcare's strategy centers on providing a full range of TCM healthcare services, including health management and also product sales. The company provides such services from a network of 12 self-operated medical institutions, 12 managed medical institutions and one internet hospital.
The company says it improves treatment efficiency and better retains patients by integrating diagnosis, treatment, rehabilitation, referrals, and health management into a single system. In 2024, it recorded nearly 3 million online and offline out-patient and in-patient visits, ranking first in China's non-public TCM hospital healthcare services with about 1.7% of the market. At the end of last September, the company had about 770,000 patients in ...
