Asian Healthcare Specialists (AHS) - a group of five doctors offering orthopaedic, trauma and sports services - is aiming for a listing on the Singapore Exchange's Catalist board.
It is placing out 46.9 million new shares at 23 cents apiece in an initial public offering (IPO) that aims to raise around $9.5 million in net proceeds.
There is no public tranche and trading starts next Friday.
AHS will have a market cap of $66.7 million on listing.
The group's medical specialists perform knee and hip replacements, sports medicine, spinal, foot and ankle surgery and minimally invasive orthopaedic procedures under the brand The Orthopaedic Centre.
AHS made a net profit of $438,000 in the 12 months to Sept 30, 2017, on revenue of $11 million.
If the service fees paid to the group's specialists had been replaced with employment agreements during this period, net profit would have been $4.46 million, AHS said. The specialists have since entered into employment agreements with the firm.
Based on the adjusted net profit of $4.46 million in 2017 and after accounting for the new shares issued, the placement share price of 23 cents represents a price-to-earnings ratio of 15 times.
AHS intends to declare a dividend of not less than 50 per cent of net profit for its 2018 and 2019 financial years.
Its four clinics are visited by a mix of expats and Singaporeans, said executive chairman and chief executive Chin Pak Lin, who specialises in hip and knee replacements.
Dr Chin said yesterday: "We are four years old; we cannot do it (an initial public offering) any sooner, I think.
"Why an IPO? We've been approached by many many people in the market, and that piqued our interest."
The IPO proceeds will be used to help AHS grow into a one-stop integrated healthcare provider for all musculoskeletal-related medical care, including post-surgery rehabilitation services such as physiotherapy as well as other ancillary services such as pain management.
In the nearer term, plans are already under way to hire one or two more surgeons, Dr Chin said.
RHT Capital is the issue manager and sponsor for the listing. UOB Kay Hian is the placement agent.