Hyphens Pharma International is seeking a listing on the Catalist board of the Singapore Exchange, with part of the proceeds from the initial public offering to go towards expansion.
The pharmaceutical and consumer healthcare group's core business segments include speciality pharmaceutical products, proprietary brands such as Ceradan and Ocean Health supplements, as well as a wholesale medical hypermart and digital business.
The initial public offering will comprise a cornerstone offering as well as a placement and a public offering, according to the preliminary offer document. A certain number of the shares under placement will be reserved for subscription by the company's directors and employees, its subsidiaries as well as business associates and others who have contributed to the success of the group.
Three cornerstone investors have entered into subscription agreements with Hyphens Pharma for a total of 30.4 million shares. These are Nikko Asset Management Asia, Qilin Asset Management and investment holding company Maxi-Harvest Group.
Meanwhile, Inomed Holding and Hyphens Pharma's executive director Tan Chwee Choon will have around 196.21 million and 43.79 million shares respectively of the company's share capital after the issuance of the cornerstone shares.
Inomed is, in turn, owned by Hyphens Pharma's chairman and chief executive officer Lim See Wah and its non-executive director, Dr Tan Kia King, who have stakes of 61.1 per cent and 38.9 per cent respectively.
The company does not have any fixed dividend policy but the board intends to recommend and distribute dividends of at least 30 per cent of its net profit attributable to shareholders for both 2018 and 2019, the document said.
It plans to use the funds raised from the listing for business expansion - including potential acquisitions, joint ventures, product development and research and development - as well as to set up its integrated facility.
The new integrated facility will be used to consolidate its operations in Singapore, the company said in the preliminary prospectus.
Aside from Singapore, the company also has a direct presence in Vietnam, Malaysia, Indonesia and the Philippines.
Last year, its profit (net of tax) rose to $6.09 million from $5.24 million, while revenue edged up from $100.97 million to $113.16 million.