KUALA LUMPUR: Qualitas Healthcare Corp Bhd has decided to pursue an initial public offering (IPO) next month as an optimum route for the future growth of the company, said a source close to the matter.

The Edge Financial Daily reported on Monday that the Malaysia-based healthcare services provider was to make a decision this week on whether it would pursue an IPO to raise funds or sell its business outright to other healthcare groups.

“After negotiations and after weighing the pros and cons of both options, the major shareholders of Qualitas have reached a decision to proceed with the IPO, which will take place in April,” said the source.

Late last year, reports surfaced that Qualitas Healthcare would be seeking a listing on the Main Market of Bursa Malaysia within the first half of this year. The group was previously listed on the Catalist Board of the Singapore Exchange in 2008 via Qualitas Medical Ltd, but was delisted in June 2011, following the acquisition of its entire equity interest by Qualitas Holdings Ltd.

Reuters had reported that bankers were expecting the IPO to raise up to US$200 million (RM725.4 million).

“Qualitas is valued at close to RM1 billion ... through the IPO. The group plans to raise sizeable funds for the future growth of the company as its potential cornerstone investors understand its position as a market leader in providing primary care services in the country,” said the source.

Based on its draft prospectus, Qualitas Healthcare plans to utilise 89.6% of its IPO proceeds for strategic investments, acquisitions and general corporate purposes, while the remainder 10.4% of the proceeds is to cover its listing expenses.

Its network of healthcare services includes Malaysia, Singapore, India and Australia.

Qualitas Healthcare was founded by chairman and managing director Datuk Dr Noorul Ameen, who is also a substantial shareholder of the company with 31.9 million shares or a 5.11% stake.

This article first appeared in The Edge Financial Daily, on March 4, 2015.