Leading Group, a digital insurance broker in China, aims to go public following a definitive business combination agreement with blank check company Healthcare AI Acquisition Corporation (HAIA).
The merger will result in Leading Group emerging as the surviving entity, with a valuation of around $430m.
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Leading Group and HAIA also aim to raise another $50m through private placement.
The broker eyes a listing on the Nasdaq Stock Market upon the merger’s completion.
Post-transaction, Leading Group’s shareholders will hold a majority of the combined company’s shares, with the company retaining majority of the board of directors.
Operating within China’s insurance services sector, Leading Group has established itself as an insurance channel specialist.
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By GlobalDataIts digital brokerage licence and integrated marketing services facilitate insurance carriers in customer acquisition and premium sales growth.
The company’s services are designed to offer visibility and development for sales channels while providing customised solutions for individual and corporate policyholders.
The company plans to use the capital from the merger to fuel organic growth within China.
Leading Group chairman Ross Benson said: “We are excited about the contemplated Nasdaq listing which will provide Leading Group with a platform for growth capital and investor participation in one of the world’s largest evolving insurance markets.
“Leading Group has an online pedigree with a strong partner and sales channel network. As a B2B participant in the insurance services market, the China market provides a landscape with significant growth potential.”
HAIA chairman and CEO Jiande Chen said: “We believe that Leading Group is well positioned to grow as an insurance channel specialist by providing digital insurance brokerage and tailored solutions to its business partners.
“We are delighted to support Leading Group in its transition to a public company. We are encouraged by the dedication of the Leading Group senior management team to achieve a successful transaction and to their commitment in growing the business in what we believe is a rapidly expanding China market for Insurance Services.”
The deal has received unanimous approval from both companies’ boards and is due to close in the fourth quarter of 2024.
This is contingent on shareholder approval from both Leading Group and HAIA, as well as standard closing conditions and regulatory clearances.
