Qiming Venture Partners’ portfolio company Arrail Group (SEHK: 06639), a leading dental services provider in China, today listed on the main board of Hong Kong Stock Exchange. The issue price is HK$ 14.62 per share, representing a market cap of HK$ 8.5 billion.
As an early investor, Qiming Venture Partners first invested in Arrail Group in 2010 and followed on in the company’s Series A, B and C rounds. The successful listing of Arrail also marks the second IPO in Qiming’s portfolio in 2022.
Arrail Group operates a network of dental clinics and hospitals under a dual-brand strategy, primarily through the Arrail Dental and Rytime Dental, to provide a range of general and specialty dental services. According to Frost & Sullivan, Arrail was the largest dental services provider in China’s premium private dental service market based on 2020 revenue. As of September 30, 2021, Arrail operated 111 hospitals and clinics in 15 first- and second-tier cities in China.
Leveraging the Group’s premium positioning and management expertise, Arrail has been able to continue to expand its operational network and attract and retain top dentists. As of September 30, 2021, Arrail had 882 senior dentists, of which over 51% of full-time dentists hold a master’s degree or higher; the dentist team also has an average of 10.2 years of experience in the industry.
At the same time, Arrail has begun implementing a standardized digital platform and SaaS system for dental operations, procurement, medical records management and patient relationship management, enabling dentists to provide high quality care to patients in an efficient and consistent manner across hospitals and clinics.
William Hu, Managing Partner of Qiming Venture Partners, said, “Arrail Group is a pioneer in China’s private dental care market, and Qiming Venture Partners has witnessed the company’s continuous growth. Today, Arrail has a nationwide presence, a team of experienced dentists and a strong talent training framework, as well as a standardized operating model which guarantees the service quality and operational efficiency. The IPO is a new starting point for Arrail Group, and we look forward to Arrail continuing to build a digital dental ecosystem and bring better oral healthcare services to its customers in the future. Qiming Venture Partners will also continue to focus on breakthrough technologies and quality healthcare service models, so that more consumers can benefit from technological advances, product and service upgrades.”
