Published on : Nov 19, 2015
The sole listed psychiatric hospital in China is on its way to dismiss the taboo of mental health. Mental illnesses in the country are still stigmatized.
Trading is scheduled to begin on Friday and Wenzhou Kangning Hospital, a privately owned institution, aims to raise HK$ 681 million in an initial public offering in Hong Kong. The hospital will do this by putting on sale 17.6 million shares at a price of HK$ 38.70 per share, which is the upper limit of the HK$ 32.10 to HK$ 38.70 indicative range.
Founder and chairman of the Wenzhou based hospital Guan Weilli said that overstressed young adults made up for a majority of the hospital outpatients and the most commonly treated mental illnesses include insomnia, depression, and anxiety.
He added that these mental diseases have been increasing in the recent past and have become rather common among the general public.
Investors believe that Knagning will make the most of a market valued to be HK$ 42.4 billion (35 billion yuan) this year, according to estimates provided by Frost & Sullivan, a team of US consultants. The consultants reveal that the value of the mental health market is likely to grow to 65 billion yuan by the next four years with nearly 200 million people in China suffering from some or the other form of mental health disorder.
The company said in a statement that the Kangning public offering was oversubscribed rather significantly. While there are 1.76 million shares on offer, the company received applications for an estimated 220.53 million shares.
The fundraising net proceeds will be used to set up more psychiatric health care units across the eastern and western regions in the mainland. Guan Weilli said that facilities will also be build in remote areas of the country where services such as these are scarce and greatly needed.