Hyphens Pharma prices IPO at 26 cents a share to raise $13.5m

Hyphens Pharma International, which sells speciality pharmaceutical products, is seeking to raise $13.5 million in net proceeds ahead of a listing on the Singapore Exchange's Catalist board.

It is offering a total of 29.6 million shares at 26 cents apiece. Cornerstone investors will take up another 10.1 per cent stake in Hyphens.

The public offer comprising three million shares closes at noon next Wednesday. Trading will commence next Friday.

Last year, Hyphens made a net profit of $6 million, up 16 per cent from 2016, as revenue rose 12 per cent to $113 million.

At 26 cents a share, Hyphens has a price-to-earnings ratio of 13 times. It will have a market cap of $78 million immediately upon listing.

The bulk of last year's revenue, or 54 per cent, came from selling and marketing products used by medical specialists, through exclusive distributorships or licensing and supply agreements with brand owners.

In particular, sales of Biosensors coronary stents, Sofibel nasal sprays and Guerbet contrast agents that are used in X-rays and similar imaging techniques accounted for 33.4 per cent of group revenue last year.

Singapore and Vietnam are Hyphen's largest markets.

In Singapore, Hyphens is also a wholesaler of pharmaceuticals and medical supplies through Pan-Malayan, a hypermart for clinics and pharmacies. Revenue from this segment accounted for 35 per cent of group revenue last year.

Hyphens also derived 11.4 per cent of revenue last year from sales of its in-house proprietary brands, such as the Ceradan brand of creams for eczema. In 2016, Hyphens acquired Ocean Health, the health supplement brand, as well as the TDF skincare brand.

Chairman and chief executive Lim See Wah, who is a pharmacist, said $7 million of the listing proceeds would be used for business expansion. Hyphens is growing its proprietary brands, with plans to launch five products this year.

A further $3 million will be used to consolidate operations in Singapore into one building with an automated packaging facility. This will be set up by the year end, Mr Lim said.

Separately, Malaysia-based timber company Jawala is also seeking a Catalist listing.

It lodged a draft prospectus to the SGX on April 30. Jawala, which manages an 11,043ha licensed area in the Sapulut Forest Reserve in Sabah, will use proceeds from the offering to develop the plantation site within the licensed area.

A version of this article appeared in the print edition of The Straits Times on May 12, 2018, with the headline 'Hyphens Pharma prices IPO at 26 cents a share to raise $13.5m'. Print Edition | Subscribe