Kangning Hospital launches $87.7m float in Hong Kong

Wenzhou Kangning Hospital, China's largest private psychiatric health care group by revenue, launched its HK$680 million ($87.7 million) initial public offering on the Hong Kong stock exchange, as part of its efforts to raise additional capital for business expansion.

The Wenzhou-based company is selling 17.6 million shares at a price range of HK$32.10-HK$38.70 ($4.14 to $4.99) each. Pricing is based on a conservative price-to-earnings ratio of 22 to 26 times of the anticipated 2016 earnings.

Shares are expected to be priced on Friday, and will be inducted for trading on Nov 20, the company said in its offer document.