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The Chinese government appears to be easing down on its crackdown on top tech companies and this may be a perfect window for WeDoctor to launch.
Chinese online healthcare services provider, WeDoctor is set to float its Initial Public Offering (IPO) by the second half (H2) of this year. The WeDoctor IPO plans were reported by Bloomberg, citing people familiar with the matter.
According to the sources, the firm is considering either a Hong Kong or US listing and that the plans from the firm could change over time, noting that talks are still in the preliminary stages. The IPO plans will come off as the second the company will be spearheading in years as its previous attempt was crushed by the crackdown on homegrown tech companies prevalent when it first tried in 2021.
WeDoctor is transforming access to medicine in an innovative digital manner. It connects more than 3000 hospitals, 300,000 doctors, and 200 million patients together. Founded in 2010 in Hangzhou China, WeDoctor now occupies a very pivotal position in the telemedicine sector in China.
The company is backed by Tencent Holdings Ltd (HKG: 0700) and it last raised funding last year from a single investor that was backed by the Shandong government. Notably, the funding at the time came in at $163 million and it gave WeDoctor a post-money valuation of $7 billion.
According to sources who spoke to Bloomberg, the size of the company’s IPO has not been decided. In the company’s first attempt to go public in 2021, the application for listing elapsed, echoing the lack of readiness to give startups like WeDoctor that control users’ sensitive info a leap that may go beyond borders.
At this time, the Chinese government appears to be easing down on its crackdown on top tech companies and this may be a perfect window for WeDoctor to launch.
WeDoctor IPO May Gain Approval Like Ant Group’s Expansion
There are certain trends in the Chinese financial markets that are suggesting an easing on crackdowns for tech companies. As Coinspeaker reported earlier, the China Banking and Insurance Regulatory Commission (CBIRC) approved the expansion of the registered capital of Ant Group’s Consumer Finance Unit from 8 billion Yuan to 18.5 billion Yuan.
While still subject to the meeting of certain conditions by the tech giant, the approval is a significant milestone when compared to the grip regulators had on Ant Group, stirring the squashing of its proposed IPO back in 2020. The speculation now remains that, for the regulators to ease up on Ant Group, chances are that the proposed WeDoctor IPO plans may also be allowed to pass.
A major bone of contention is the firm’s proposed plans to list in the US also. While the Chinese regulators are likely to shift grounds, the firm may be required to make some concessions also as both countries are still in a subtle war pertaining to data accessibility and transfer from each other’s shores.