Tongrentang Medical and Health IPO Plans to Globally Offer 108 Million H Shares

Tongrentang Medical & Health is preparing for an IPO. The company plans to conduct a global offering of 108 million H shares, of which approximately 10% will be offered in Hong Kong and approximately 90% will be offered internationally. The offer price per share is HK$5.48 to HK$6.21. One board lot consists of 500 shares. It is expected that the H shares will commence trading on the Stock Exchange at 9:00 a.m. on Tuesday, July 7, 2026.

The company provides comprehensive traditional Chinese medicine (TCM) medical services to individual customers, standardized management services to institutional customers, and offers various health products and other products. The company combines “medicine” and “wellness” to provide modern, customized TCM medical services, integrating TCM drug therapy and non-drug therapies. Through standardized management, the company provides customers with suitable treatment plans to meet their diverse needs.

The company has entered into cornerstone investment agreements with Airport Technology Capital, Aurora SF, etc. Pursuant to these agreements, the cornerstone investors have agreed to subscribe for, or procure their designated entities to subscribe for, the relevant number of offer shares that can be purchased at the offer price, subject to certain conditions, with a total amount of approximately HK$296.1 million.

Assuming the offer price is HK$5.85 per offer share, after deducting the estimated underwriting commissions and other fees and expenses payable by the company in connection with the global offering, and assuming that the over-allotment option is not exercised, the company is expected to receive net proceeds from the global offering of approximately HK$562.4 million. The net proceeds from the global offering are intended to be used for the following purposes: approximately 63.7% will be used to expand the company’s TCM medical service network and enhance the company’s TCM medical service capabilities during the period from 2026 to 2030; approximately 26.3% is expected to be used to repay certain outstanding bank loans; and approximately 10.0% will be used as working capital and for other general corporate purposes.