Aoxin Q&M Dental offering 57m placement shares at 20 cents each

Details of pricing for the Chinese dental business being spun off from Singapore-listed Q&M Dental Group were released yesterday.

Aoxin Q&M Dental Group is offering 57 million placement shares at 20 cents apiece ahead of an initial public offering (IPO) on the Catalist board of the Singapore Exchange.

The firm is seeking to raise about $9.1 million in net proceeds via the placement which commenced yesterday.

There is no public tranche, but members of the public can apply for shares via their brokers.

The placement will close at noon next Monday, and trading is expected to commence next Wednesday.

At 20 cents a share and with a post-IPO share capital of 355.8 million, Aoxin will have a $71.2 million market value upon listing.

  • $6.4m Amount of the funds raised that will be used for the expansion of business through organic growth, mergers and acquisitions, joint ventures and partnerships.

    $2.7m Amount of the funds raised that will be spent on infrastructure and working capital.

Post-IPO, Q&M Dental Group's stake in Aoxin will be reduced from 54.7 per cent to 45.94 per cent.

This will fall to 43.92 per cent immediately after the allotment of 16.3 million new shares representing 4.39 per cent of Aoxin's enlarged share capital to Honour as part of a share subscription agreement entered into last year.

At an issue price of 12 cents per share, the allotment is intended to reward 94 China-based dental professionals and employees, said Aoxin.

Post-IPO and after the allotment, executive director Shao Yongxin's stake in Aoxin will be pared from 36.61 per cent to 29.4 per cent.

The 57 million placement shares represent 15.32 per cent of all Aoxin shares after the Honour allotment.

Aoxin is a private dentist and distributor of dental equipment and supplies in the Liaoning province, comprising 113 dentists and 127 dental surgery assistants. It either operates or manages four dental hospitals and seven polyclinics across four cities.

Of the funds raised, $6.4 million will be used for the expansion of business through organic growth, mergers and acquisitions, joint ventures and partnerships. The other $2.7 million will be spent on infrastructure and working capital.

Aoxin made a net loss of 102,000 yuan (S$20,697.21) in the first nine months of last year, while revenue came in at 61.5 million yuan. On a pro forma basis, it would have made a net profit of 4.88 million yuan.

A version of this article appeared in the print edition of The Straits Times on April 19, 2017, with the headline 'Aoxin Q&M Dental offering 57m placement shares at 20 cents each'. Print Edition | Subscribe