DLA Piper advises on Xunfei Healthcare Technology’s USD75 Million Hong Kong IPO and Listing

DLA Piper has advised joint sponsors Huatai Financial Holdings (Hong Kong) Limited, GF Capital (Hong Kong) Limited, CCB International Capital Limited and the underwriters on the USD75 million IPO and H shares listing of Xunfei Healthcare Technology Co., Ltd. (Xunfei Healthcare Technology) on the Main Board of The Stock Exchange of Hong Kong Limited. This IPO is the only A-share spin-off company this year to successfully gain approval from the China Securities Regulatory Commission and be listed in Hong Kong. It is also the first stock in the medical large model sector.

Xunfei Healthcare Technology, a spin-off from China’s leading AI pioneer Iflytek Co., Ltd., is an AI-driven healthcare solution provider. It offers a wide range of products and services, including health risk warnings, early screening, auxiliary diagnosis and treatment, treatment effect evaluation, post-discharge management, and chronic disease management. In 2023, it ranked first in the healthcare AI industry in terms of revenue in China with a market share of 5.9%.

The DLA Piper team, led by Capital Markets partner Christina Loh (Hong Kong), included Singapore partner Nathan Bush, who focused on sanctions compliance and Greater China Head of Capital Market Compliance, Vivian Liu. They were supported by registered foreign lawyer Tuo Jiang and associates Maisie Yeung, Jay Choy, Jessica Sun, Sun Yu and corporate associates from Kaiman Legal, a PRC firm based in Shanghai.

Christina Loh said: “Xunfei Healthcare’s IPO highlights the increasing demand for AI-driven healthcare solutions to address global medical needs. Our team’s expertise in capital markets and the healthcare sector allowed us to provide seamless support throughout the process. This milestone listing underscores the growing prominence of AI healthcare companies in Hong Kong’s capital markets and showcases our firm’s ability to navigate complex regulatory frameworks and achieve successful outcomes for our clients.”

Nathan Bush added: “In the current geostrategic and regulatory climate, financial institutions and investors are increasingly sensitive to the complexity, variation, and potential impact of unilateral and multilateral sanctions and export controls. This heightened awareness is crucial as these sanctions and controls can significantly affect cross-border transactions and investments.”

DLA Piper continues to advise on some of the most prominent IPOs and secondary listings in Hong Kong and the United States. This latest transaction underscores the firm’s commitment to delivering exceptional legal counsel across jurisdictions, industries, and regulatory regimes.