(Yicai Global) Sept. 13 -- Digital and mobile healthcare platform 1 Drugstore's parent company 111 [NASDAQ:YI] listed on the Nasdaq Stock Market yesterday, becoming the first Chinese internet medical health company to go public in the US.
Its opening price was USD16.75, 2 percent higher than its list price of USD14. It will thus raise USD100 million via the offering as its stock closed at USD13.8.
J.P. Morgan, Citibank and China International Capital are the underwriters.
The company styles itself "a leading digital and mobile healthcare platform ... devoted to online medical services and online pharmacy through optimized supply chain and resources. 111's primary income comes from sales of pharmaceuticals and other health products. The business-to-business commodities' gross merchandise volume reached CNY230 million (USD34.1 million) in the second quarter, up 44.0 percent from CNY160 million in the first, per the prospectus.
111 owns 1 Drugstore -- a self-supporting online business-to-consumer drugstore -- 1 Clinic, an internet hospital, and 1 Drug Market, a B2B medicine wholesale platform.
The Chinese medical system faces three challenges, to wit that "medicine distribution and the retail market are shattered, pharmaceutical companies obtain limited market data and channels, and services are bad," 111 noted in its prospectus.
The funds from the listing will go to researching and developing artificial intelligence and Big Data technologies, marketing, asset acquisitions and to replenish working capital.
Editor: Ben Armour