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DatukYvonneChia-03Dec2014_theedgemarketsKUALA LUMPUR: Asian Healthcare Group Bhd, led by former Hong Leong Bank Bhd group managing director and chief executive officer Datuk Yvonne Chia (pic) as its executive director and chairman, plans to raise RM750 million from its initial public offering (IPO) on the Main Market of Bursa Malaysia, of which 95% of the proceeds will be used to acquire new qualifying assets.

It will be the country’s first healthcare special purpose acquisition vehicle (SPAC) listing on Bursa, which has seen four oil and gas (O&G) SPACs listed to date — namely Hibiscus Petroleum Bhd, CLIQ Energy Bhd, Sona Petroleum Bhd and Reach Energy Bhd.

According to its draft prospectus lodged with the Securities Commission yesterday, Asian Healthcare said it intends to acquire at least one secondary and/or tertiary care hospital with 100 to 500 beds in Malaysia together with any complementary services attached to such hospital(s) for its qualifying acquisition.

Asian Healthcare’s IPO involves an offering of 1.5 billion new shares at an issue price of 50 sen per share, and to entice investors; it comes together with one warrant for each share subscribed.

Out of its 1.5 billion shares to be issued, 112.55 million shares will be allocated to retail investors, while 1.39 billion shares have been earmarked for institutional investors.

Apart from the 1.5 billion new shares and 1.5 billion warrants, there are also 187.5 million redeemable convertible preference shares of 10 sen each that will be converted into 375 million new shares together with 375 million attached warrants, which will raise gross proceeds of around RM18.75 million.

Asian Healthcare said it plans to use 95% or RM712.50 million of its proceeds from the IPO to acquire its qualifying asset, while the balance will be used to cover its listing expenses and for working capital.

Apart from Chia, Asian Healthcare has at its helm BP Healthcare Group managing director (MD) Datuk Chevy Beh as its executive director and MD and renowned medical doctor Tan Sri Dr M Jegathesan as its credentialing counsel.

Going forward, the group aims to be an integrated healthcare services provider, with services ranging from primary to tertiary, intermediate and long-term care in Malaysia. It may also expand its business in other countries in Southeast Asia such as Indonesia, Thailand and Singapore.

Post-listing, its IPO investors will hold an 80% stake in the enlarged issued share capital of the company, while Chia, Beh and Negrita Holdings Sdn Bhd will have equity interests of 8%, 5% and 7% respectively.

The group would have a market value of around RM937.5 million upon listing based on its issue price.

 

This article first appeared in The Edge Financial Daily, on December 3, 2014.

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