Qualitas Medical is delaying its initial public offering (IPO) on the Singapore Exchange's mainboard because of pricing and market volatility, the regional clinic operator said.
"While our book was well supported, including commitments from anchor investors, we believe pricing was not optimal given, among other things, recent market volatility," said Qualitas, which had been expected to launch a deal said to be worth $100 million to $133 million. It will continue to execute its business plan and expand through "robust organic growth" and mergers and acquisitions.
Qualitas, backed by Singapore-based private equity firm Southern Capital Group, lodged its preliminary prospectus with the Monetary Authority of Singapore last month. It said proceeds from the listing will be used for strategic investments and acquisitions in markets like Indonesia, Myanmar and Vietnam, organic growth and potentially new ambulatory care centres in Malaysia, clinics in Singapore and medical imaging centres in Australia.
However, as at April 24, it had not yet priced the IPO though books closed on April 10.
Qualitas is not the only one that has delayed its IPO on SGX. This week, Summit Power International said it has deferred its US$260 million (S$345 million) IPO on SGX, in what would have been the first overseas listing from a Bangladeshi firm.
REASON FOR DELAY
While our book was well supported, including commitments from anchor investors, we believe pricing was not optimal given, among other things, recent market volatility.