Pet Clinic Ruipeng Seeks New Funds at $3 Billion Valuation

(Bloomberg) -- New Ruipeng Pet Healthcare Group Co. is seeking to raise funds at a valuation of about $3 billion ahead of its planned initial public offering, people with knowledge of the matter said.

The Hillhouse Capital-backed pet clinic operator is working with an adviser to raise about $300 million in the pre-IPO round, according to the people, who asked not to be identified as the information is private. New Ruipeng, based in Shenzhen, has approached potential investors including Tencent Holdings Ltd., which could invest about $50 million, the people said.

Hillhouse, which was also an early backer of Tencent, was planning an IPO of some of its animal hospital assets that could raise at least $500 million, Bloomberg News reported last year. New Ruipeng was created in 2019 after Hillhouse consolidated its animal healthcare assets in China. The original Ruipeng was founded in 1998.

The company operates more than 1,300 pet clinics across China, according to its website. Its other services for pets include beauty salons and online diagnosis assessment platforms. New Ruipeng aims to grow its number of clinics to about 5,000 in three years, the company said in a press release in April.

Wealthy Chinese consumers are spending more than ever adopting and caring for pets in a local market that consultancy and research firm Frost & Sullivan expects will more than double to 472 billion yuan ($66 billion) by 2023.

Deliberations are at an early stage and details of the fundraising including size could still change, the people said. Representatives for Hillhouse and Tencent declined to comment, while representatives for New Ruipeng didn’t immediately respond to requests for comment.

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With assistance from Bloomberg