(Bloomberg) -- WeDoctor is close to raising $350 million ahead of a planned initial public offering that's been complicated by the departure of Chief Financial Officer John Cai, who joined this year to spearhead the deal, according to people familiar with the matter.
The company is still pushing ahead with an IPO in Hong Kong and plans to file its prospectus around the February Lunar New Year, said the people, who asked not to be identified discussing an internal matter. Cai has left the Tencent Holdings Ltd.-backed firm while being offered an advisory role, the people said.
It has been a year of structural shifts and unexpected bumps for the Hangzhou-based company, which will now need to find a quick replacement as it continues to work on its listing. Part of a growing contingent of tech giants trying to transform China's health-care system, the firm is navigating an increasingly strict regulatory environment after recent government crackdowns on internet companies.
Read more on China's crackdown on internet companies
In preparations for the listing, WeDoctor is splitting the business into two parts, with plans to list its health-care services operations, which include both online and on-the-ground consulting, they said. That part is valued at more than $6 billion pre-money in its latest funding round, the people said, adding that the target is preliminary and could be subject to change.
Read more: WeDoctor Hires New CFO to Lead Hong Kong IPO
Its more sensitive data business that handles personal medical records will be spun off and kept private to comply with regulatory demands, the people said.
Citigroup Inc. along with JPMorgan Chase & Co. and CMB International Securities Ltd. had earlier been picked to lead the share sale, which was expected to happen before the end of this year. WeDoctor was seeking to raise $500 million to $1 billion in the listing, a person familiar has said.
WeDoctor and Cai declined to comment.
Cai was hired in the first quarter to spearhead its IPO, bringing with him experience running AIA Group Ltd.'s operations in key markets including China, Malaysia and Vietnam. At the time, the company was aiming for a $10 billion valuation.
WeDoctor's business spans from insurance policies and medical supplies to online appointment-booking and clinics. The country's largest health-care payer, which covers more than 95% of the population, is working with the company to provide insurance-covered health care.
The company operates 16 health-care facilities and 30 online internet hospitals, connecting 7,600 hospitals and 250,000 physicians as of October. In a 2018 funding round, it was valued at about $5.5 billion.
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