GIC-backed AI Healthcare Solutions Provider Yidu Tech Files For HK IPO

Yidu Tech Inc, a Chinese big data and AI-powered healthcare solutions provider backed by Singapore’s GIC and Tencent, filed for an initial public offering (IPO) application on the main board of the Hong Kong Stock Exchange (HKEX) on Monday.

The company’s prospectus is highly redacted. The IPO pricing, size, and timeframe are yet to be announced.

Founded in 2014, Yidu Tech initially focused on the aggregation and processing of healthcare data for partner hospitals. Through its self-developed AI engine, YiduCore, the company helps hospitals collect and convert heterogeneous data into standardized data that can be further processed by way of deep learning, ultimately generating medical insights.

Beijing-based Yidu Tech later grew into a medical solution provider to hospitals and other healthcare institutions, regulators and policymakers, life sciences industry players and patients.

The company raised a total of $337.14 million across 11 rounds of financing before it filed for the IPO application, according to its prospectus.

Its investors include Chinese sovereign wealth fund China Investment Corporation (CIC), Tencent, and Singapore’s GIC Private Limited, which invested an aggregate of $70 million in Yidu Tech between 2017 and 2018 through an indirectly wholly-owned firm, Astonish Investment.

China-focused life sciences investment firm BVCF Management; Chinese insurer Sunshine Insurance Group; affiliates of MSA Management, which focuses on both venture and growth-stage investments in the consumer, healthcare and enterprise solutions fields in China, and other investors also injected capital into the company.

Its prospectus shows that Sunshine Insurance Group now holds a 12.89 per cent stake in Yidu Tech, while GIC has an 8.06 per cent stake. Tencent owns a combined 4.37 per cent stake through two affiliates.

The company became profitable in the fiscal year ended March 31, 2019, with a profit of 5.7 million yuan ($824,104), compared to a loss of 900,000 yuan ($130,136) one year earlier. Its profit further increased to 146.5 million yuan ($21 million) in the fiscal year ended March 31, 2020, according to its prospectus.

Its total revenues increased by 348.9 per cent from 22.7 million yuan ($3 million) in the fiscal year ended March 31, 2018, to 102.0 million yuan ($15 million) in 2019 and further by 447.1 per cent to 558.1 million yuan ($81 million) in 2020.