Alliance Healthcare debuts on Catalist at 20.5 cents, 2.5% higher than IPO price

SINGAPORE - Alliance Healthcare Group on Friday (May 31) made its debut on the Singapore Exchange's (SGX) Catalist board at 20.5 cents, 2.5 per cent higher than its IPO (initial public offer) price of 20 Cents.

At 12.20pm on Friday, the counter was trading flat at 20 cents, with about 1.5 million shares exchanging hands.

Of the 32 million shares offered during its IPO, one million was sold by way of public offer and 31 million shares by placement.

By the close of the IPO at 12pm on May 29, the public offer received 480 valid applications for about 18.4 million shares in total against the 1 million shares available, Alliance Healthcare said. Application monies for the public offer amounted to $3.7 million.

The placement tranche saw all 31 million available validly subscribed for, with application monies totalling $6.2 million, the company said.

Excluding applications for about 0.6 million placement shares by connected persons, and based on the valid applications received, the IPO was about 1.5 times subscribed.

Said Dr Barry Thng Lip Mong, executive chairman and CEO of Alliance Healthcare: "We are heartened by the positive response to our IPO, which is an indication of investors' confidence in Alliance Healthcare's business fundamentals and commitment towards delivering cost-effective and evidence-based medical solutions by leveraging the use of technology.

"With an enlarged capital base from our successful listing, we are now well-positioned for the continued expansion of our business, while our status as a listed company will enhance our visibility, and potentially bring about greater opportunities as we continue to deliver quality and affordable healthcare services."

After deducting listing expenses, the net proceeds of $4.5 million will be used for the expansion of its network of clinics and medical facilities, acquisitions, joint ventures and/or strategic alliances, as well as investing into technology systems and expanding its pharmaceutical services business, Alliance Healthcare said.

At 20 cents per share, the company's market cap works out to about $41.6 million.

While the group does not have a fixed dividend policy, the board of directors intends to recommend and distribute dividends of at least 30 per cent of its net profits (excluding exceptional items) for FY20 and FY21.

For the financial year ended June 30, 2018, Alliance Healthcare's revenue increased by nearly 15 per cent year on year to $33.8 million, while net profit more than doubled to $3.1 million.

Founded in 1994, Alliance Healthcare provides healthcare services in Singapore through four key business segments - managed healthcare solutions, GP clinic services, specialist care services and pharmaceutical services.

Under its managed healthcare solutions business, the group has arrangements with eight insurers, and serves over 2,000 corporations via a network of self-owned clinics and panel of medical services providers.

The group also owns and operates 17 GP clinics, with 16 under the "My Family Clinic" name, and five specialist clinics, while its pharmaceutical services business carries out wholesale distribution of pharmaceutical products to hospitals, pharmacies and clinics both in Singapore and abroad.