China-based Waterdrop Inc. Goes Public on NYSE to Raise $360 Million

Waterdrop Inc., a Chinese online insurance technology company, is planning an initial public offering on the New York Stock Exchange in an effort to raise up to $360 million.

According to the firm’s filings with the Securities and Exchange Commission (SEC), it will sell 30 million American Depository shares for between $10 and $12 each. Waterdrop is backed by the Chinese multinational technology conglomerate holding company Tencent.

The firm’s shares will be priced on Thursday after the U.S. market closes. However, $100 million in the deal has already been secured after cornerstone investors subscribed for $210 million worth of stock with Boyu Capital, one of Waterdrop’s existing major shareholders.

There is also an over-allotment option, which will allow the selling of an additional 4.5 million shares.

Waterdrops’s IPO process was slowed in April after its business risks were questioned by the China Banking and Insurance Regulatory Commission (CBIRC). The firm primarily distributes insurance policies online as well as provides illness crowd-funding. It was not immediately clarified what risks the CBIRC saw in the business.

In an email statement, Waterdrop denied that Chinese regulators were opposed to its capital markets plan at the time, further adding that its senior managers and regulators were engaged in regular communication.

Source: Nikkei Asia