(Yicai Global) Aug. 5 -- Alibaba Health Information Technology has raised HKD10 billion (USD1.3 billion) in a secondary share sale to meet the new opportunities in smart healthcare presented by the Covid-19 pandemic, the unit of Alibaba Group Holding said in a filing to the Hong Kong stock exchange today.

The fresh equity, which accounts for roughly 3.85 percent of its total issued shares, is priced at HKD20.05 (USD2.58) apiece, a discount of about 8 percent on yesterday’s closing price of HKD21.80 before the announcement was made. Today, AliHealth [HKG:0241] fell 2.5 percent to HKD21.25.

It is the first public fund raising since AliHealth listed in Hong Kong in 2014. The Chinese government recently introduced policies to promote internet healthcare, putting the sector on an accelerated development track, the Hangzhou-based firm said.

The sale was underwritten by Citigroup Global Markets and Credit Suisse Hong Kong. The new shares will see e-commerce giant Alibaba’s stake diluted to 56.99 percent.

AliHealth plans to use the funds raised to leverage the latest digital and Internet of Things technologies to build an omnichannel for pharmaceutical and healthcare products and services as well as to develop more convenient internet healthcare scenarios.

The firm will also continue to help the government and partners in the upgrading of informatization and the transformation of medical services, it said.

Editor: Kim Taylor