Hyphens Pharma IPO ends on modest gain

Hyphens CEO Lim See Wah says the success of the IPO will help the firm expand and maintain growth momentum.
Hyphens CEO Lim See Wah says the success of the IPO will help the firm expand and maintain growth momentum.

Healthy debut with firm's stock up 5.8% from initial IPO price

Healthcare firm Hyphens Pharma International made a positive debut on the Singapore Exchange's Catalist board yesterday with the stock up 5.8 per cent from its initial public offering (IPO) price.

The shares closed at 27.5 cents after debuting at 26 cents with 20.4 million shares changing hands.

The company had offered 29.6 million new shares in total. The public tranche of three million shares was 152 times subscribed, with application funds of about $118.5 million lodged.

There were indications of interest for about 324.7 million of the 23.8 million placement shares.

The valid acceptances for the reserved shares resulted in all 2.8 million being allotted.

Separately, three cornerstone investors - Nikko Asset Management Asia, Qilin Asset Management and Maxi-Harvest Group - have each agreed to subscribe for a total of 30.4 million new shares at 26 cents each.

Hyphens, a speciality pharmaceutical and consumer healthcare company, said it intends to use the IPO's estimated net proceeds of $13.5 million for business expansion, including potential acquisitions, joint ventures, research and development and to set up an integrated facility. Funds will also be used for general corporate and working capital purposes.

"With the success of our IPO, we are well-placed to expand and strengthen our product range and maintain growth momentum through scaling our presence in markets that we operate in and expanding into new geographical markets," said Mr Lim See Wah, the chairman, executive director and chief executive.

Hyphens Pharma's listing brings the total number of healthcare companies listed here to 38, with a combined market capitalisation of more than $63 billion, the SGX said yesterday.

There are now 205 companies listed on Catalist, with a combined market cap of around $12 billion.

A version of this article appeared in the print edition of The Straits Times on May 19, 2018, with the headline 'Hyphens Pharma IPO ends on modest gain'. Print Edition | Subscribe