【New Stock IPO】Tong Ren Tang Medical Care 2667 IPO Raising Up to Nearly 900 Million Yuan　Oversubscription of 1.8 Times with 250 Million Yuan in Margin Trading　Entry Cost of 4,192 Yuan per Lot、Fourth Listed Company in Tong Ren Tang Group

Tongrentang Medical & Wellness (New Listing Number: 02667) From March 20 to 25, the IPO will be open. Tongrentang Group’s subsidiary, engaged in traditional Chinese medicine medical services, plans to issue 110 million H-shares, with 10% available for public offering in Hong Kong. The offering price ranges from HKD 7.3 to HKD 8.3, raising up to nearly HKD 900 million.

As of the evening of March 20, Tongrentang Medical & Wellness received HKD 250 million in margin subscriptions, with HKD 89.77 million raised from the public offering, representing an oversubscription of 1.8 times.

Each board lot of Tongrentang Medical & Wellness consists of 500 shares, with an entry cost of HKD 4,191.90. The company is expected to list and start trading on March 30. China International Capital Corporation (CICC) is the sponsor.

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Tongrentang Medical & Wellness mainly focuses on traditional Chinese medicine medical services. It currently operates 12 owned medical institutions and one internet hospital, and manages 10 offline medical facilities. Other members of the group mainly produce and sell Chinese medicine health products and provide limited medical services, such as Chinese medicine diagnosis services at pharmacy counters.

Based on total outpatient visits and inpatient admissions in 2024, Tongrentang Medical & Wellness is the largest Chinese medicine hospital group in China’s private Chinese medicine hospital industry, with a market share of 1.7%. In terms of total revenue from Chinese medicine medical services in 2024, it ranks second in the private Chinese medicine hospital industry with a market share of 0.2%, accounting for 46.5% of the total Chinese medicine medical services market in China that year.

Fourth listed company within the Tongrentang Group

Tongrentang Medical & Wellness will become the fourth listed company within the Tongrentang Group, following Tongrentang Co., Ltd. (Shanghai: 600085), Tongrentang Technology (01666), and Tongrentang Guoyao (03613).

Last year, Tongrentang Medical & Wellness’s revenue for the first nine months was RMB 860 million, a 3% increase year-on-year. The parent company’s attributable profit was RMB 24 million, a decrease of 9.8%.

Tongrentang Medical & Wellness has introduced cornerstone investors with Zhengzhou state-owned background, Aviation Port Technology Capital and Aurora SF, subscribing for RMB 390 million.

Use of net proceeds

• 47.5%: Expand the Chinese medicine medical service network
• 23.6%: Enhance Chinese medicine medical service capabilities
• 18.9%: Repay certain bank loans
• 10%: Operating capital and other general corporate purposes

Source: Tongrentang Medical & Wellness Announcement

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