Company Briefs: Roxy-Pacific Holdings

Roxy-Pacific Holdings

Roxy-Pacific Holdings is buying a commercial building in Auckland, New Zealand, for NZ$72.55 million (S$68.3 million) excluding taxes, the property developer announced yesterday during the midday trading break.

The deal will be funded with internal resources and bank loans, and NZ$3.69 million will be paid as deposit upon the completion of due diligence.

The property at 280 Queen Street in Auckland's central business district comprises 11 storeys of office space, three storeys of retail space and secure off-street parking for 48 cars. The total site area is 2,253 sq m, with a net lettable area of 14,690 sq m.

Roxy-Pacific described the property as "a prime investment opportunity" with the "potential to be a stable source of rental income" for the group.

Roxy-Pacific shares did not trade yesterday morning, but were quoted at 38.5 cents bid and 39.5 cents offered.


Medinex

Medinex, a provider of professional support services to medical clinics, has priced its initial public offering (IPO) at 25 cents per share, ahead of a listing on the Catalist board of the Singapore Exchange.

The IPO will raise gross proceeds of $7.5 million, of which Medinex will receive $5.32 million in net proceeds. Based on the IPO price, Medinex will have a market capitalisation of $32.8 million, which is 25 times its pro forma net profit of $1.3 million last year.

Medinex made a pro forma net profit of $1.3 million in the first half of this year, on revenue of $4.9 million. This was more than double the $583,000 net profit it made in the first half of last year, on revenue of $1.1 million.

The IPO comprises a placement tranche of 30 million shares, comprising 26 million new shares and four million vendor shares. There is no public tranche and the placement closes on Dec 5. Trading commences at 9am on Dec 7.

In the first half of this year, 67 per cent of pre-tax profit came from support services rendered to healthcare firms, 28 per cent from professional fees collected from non-healthcare clients like salons and education firms, and 5 per cent from pharmaceutical services, where Medinex assists clinics in buying drugs and other medical products in bulk.

Medinex does not have a fixed dividend policy, but it intends to distribute at least 70 per cent of profit after tax as dividends for the 2018, 2019 and 2020 financial years.

A version of this article appeared in the print edition of The Straits Times on December 01, 2018, with the headline 'Company Briefs'. Print Edition | Subscribe