JD Health prices shares at $HK70.58, raises $3.48 bln in HK's biggest IPO in 2020 - term sheet

HONG KONG, Dec 2 (Reuters) - JD Health International Inc has priced its shares at HK$70.58 ($9.10) each and raised about $3.48 billion in Hong Kong's biggest initial public offering (IPO) this year, according to a term sheet.

The company, a unit of e-commerce giant JD.com , did not immediately respond to a request for comment.

At $HK70.58 each, the top of the HK$62.80 and HK$70.58 range flagged by the company when the IPO launched last week, JD Health will be valued at nearly $29 billion.

The company sold 381.9 million shares, which is 12.2% of JD Health's enlarged share capital. A greenshoe option can be exercised within a month to sell a further 15% of stock, which would take the size of the IPO up to $4 billion.

This is the largest IPO in Hong Kong in 2020, followed by China Bohai Bank's $2.05 billion IPO in July, and sets the tone for its capital markets to end the year on a high note.

The JD Health float will take Hong Kong's IPO proceeds to over $25 billion in 2020, from more than 100 individual deals, putting it on track to record the best year in a decade, Refinitiv data shows. The value reaches $39.1 billion, including secondary listings in the city.

JD.com's secondary listing in June that raised $4.4 billion was the largest for Hong Kong this year.

The proposed high valuation for JD Health shares prompted some investors to buy cheaper stocks of major rival Alibaba Health Information Technology during the JD bookbuild, a fund manager source told Reuters.

Alibaba Health's share price rose about 10% to HK$22.2 apiece last week while the JD Health deal was underway. ($1 = 7.7521 Hong Kong dollars) (Reporting by Scott Murdoch and Kane Wu in Hong Kong; Editing by Himani Sarkar)