Venture Capital

Nasdaq-Listed Digital Healthcare Firm 111’s Unit Eyes STAR IPO After $79 Million Fundraiser


Nasdaq-Listed Digital Healthcare Firm 111’s Unit Eyes STAR IPO After $79 Million Fundraiser

A subsidiary of Nasdaq-listed Chinese digital healthcare platform 111 Inc has secured 515 million yuan (almost $78.8 million) in new funding at a pre-money valuation of 10 billion yuan ($1.5 billion), as the unit plans an initial public offering (IPO) on Shanghai’s STAR Market.

As the principal operating subsidiary of 111 in China, 1 Pharmacy Yaofang Technology (Shanghai) Co Ltd (Yang Fang Shanghai) raised the new capital from existing shareholders, such as Youkai Investment, Shanghai Strategy Fund, and Liangji Industrial, 111 disclosed in a filing with Nasdaq on late Tuesday.

New investors in the deal include SAIF Partners, Shenli Investment, Huasai Fund, Zhangjiang Torch Venture Investment, GeniLink Capital, Shanghai Science & Technology Venture Capital, Renmin Pudong Investment, Ideate Investments, Zhangjiang Technology Venture Investment, and Huazhi Capital.

The new investment follows the completion of a 419.8-million-yuan ($60.5 million) round in August 2020, bringing the total capital raised by Yao Fang Shanghai to over 934.8 million yuan ($142.8 million).

Proceeds of the new round will support the firm’s business expansion, including its capacity to address the growing market demand for healthcare digital solutions, said the parent firm in the filing.

As part of the deal, the investors have agreed to “take all necessary and reasonable steps” to facilitate the proposed listing of Yao Fang Shanghai on the STAR Market, a stock exchange that started operations in July 2019 and has by far welcomed the IPOs of 207 companies with a combined market cap of over 3.2 trillion yuan ($489.3 billion).

The filing noted that if Yao Fang Shanghai’s IPO is not completed before June 30, 2023, or the date other agreed by the firm and its investors in writing, the investors will have the right to require Yao Wang Corporation Limited, the controlling shareholder of Yao Fang Shanghai, to redeem all or part of the equity interests then owned by such investors at a price equal to the initial investment amount plus accrued interest at a simple annual rate of 6 per cent.

Shanghai-based 111 operates three businesses: 1 Drugstore, an online retail pharmacy; 1 Clinic, an Internet hospital that provides consumers with online consultation, electronic prescription, and patient management services; and online wholesale pharmacy 1 Drug Mall.

The firm also offers an omnichannel drug commercialisation platform to its strategic partners, covering services like digital marketing, patient education, data analytics, and pricing monitoring.

According to its unaudited financial results for Q3 2020, the firm booked 2.36 billion in net revenues in Q3, up 112.8 per cent compared to the same period in 2019. Its gross profit rose 90 per cent year-over-year to 90 million yuan in the quarter.

Shares of 111 have more than halved since its $100.5 million Nasdaq IPO in September 2018.

This article was originally published by Deal Street Asia



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