Aesthetic group Niks Professional’s public offer 5.9 times subscribed

AESTHETIC medical-services provider Niks Professional’s initial public offering (IPO) was 5.9 times subscribed, with 21.8 million new shares in the company’s capital offered at S$0.23 per share.

Of the 21.8 million, a million shares were available by public offer. Applicants applied for an aggregate of 5.9 million of these shares, which amounted to approximately S$1.35 million, the company announced on the Singapore bourse on Thursday (Oct 26).

The remainder 20.8 million stocks were placement shares, of which 3.7 million was reserved for management, employees and directors.

The placement shares were approximately 1.6 times subscribed. The company received indications of interest for about 32.9 million placement shares.

This means that overall, the IPO was 1.8 times subscribed, taking into account interest for the public offer shares and indications of interest for the placement shares.

The new shares will represent 16.8 per cent of the company’s enlarged share capital.

The proceeds will go into funding organic growth, acquisitions, joint ventures and/or strategic alliances, as well as for general working capital, the company had said in an earlier announcement.

​​The company was founded in 1998 by husband-and-wife team, Cheng Shoong Tat and Dr Ong Fung Chin. He is chairman and chief executive, and she, the company’s president and chief medical officer.

Niks Professional has three clinics across Singapore – in Orchard, Jurong East and Tampines – offering services such as light and laser procedures, injectables and mole removal.

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The company also runs three retail outlets selling Niks skincare products and providing facial services, and a business-to-business operation in China.

Niks Professional’s stocks begin trading on the Singapore Exchange at 9 am on Friday, under the trading code “NPL” in board lots of 100 shares.

The group does not have a fixed dividend policy, but intends to recommend dividends of no less than 50 per cent of the net profit after tax for FY2023, and 40 per cent in FY2024.