Wenzhou Kangning Hospital Co, China's first listed psychiatric hospital, is planning on filing an IPO in the A-share market to raise capital amounting to 193 million yuan ($29.44 million) with the aim of expanding its business, according to an official post on Friday.
The raised funds will be invested in a building, renovation and training center, the post on the official website of the China Securities Regulatory Commission said.
Founded in 1996, the Wenzhou-based hospital in East China's Zhejiang Province is also listed on the Hong Kong Stock Exchange. As of June 30, Kangning Hospital had ten self-owned hospitals in operation and was managing eight medical institutions, the hospital's investment prospectus and disclosure said.
According to data on the group's 2016 revenue, Frost & Sullivan, a global consulting firm, ranked Kangning Hospital as the largest private psychiatric hospital group in China and the fourth major player in the domestic psychiatric market, Kangning's disclosure noted.
Guan Weili, the hospital's 48-year-old founder, used to be a clinician at Wenzhou Mental Hospital, the disclosure said.
Kangning Hospital's main business covers medical services, drug distribution as well as other medical institution management services. Drug sales and treatment services account for 25.33 percent and 69.81 percent of its business, respectively, the disclosure noted.
The group has been involved in more than 30 disputes since 2013, the filing said.
From 2014 to the first half of 2017, Kangning's hospital bed usage rate was around 90 percent, the prospectus data showed.
The World Health Organization reported earlier this year that 54 million people in China currently suffer from depression, costing the country $7.8 billion every year in medical expenditures and funeral expenses. This means that nearly 4 percent of the Chinese population has some form of depression, CGTN reported.
