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Alliance Healthcare issues 32 million shares at S$0.20 per share in IPO

ALLIANCE Healthcare Group is offering 32 million shares at S$0.20 per share as it seeks a listing on the Catalist board of the Singapore Exchange.

Of the 32 million shares, one million will be by way of public offer, while 31 million will be by way of placement. The new shares will represent 15.4 per cent of the company’s share capital post initial public offering (IPO).

Alpine Investment Holdings - a vehicle held by chief executive officer Barry Thng Lip Mong, Loh Cher Zoong, Goh Tiong Jin and Yun Kok Onn - will have a stake of 64.2 per cent in the company’s post-invitation share capital.

At 20 Singapore cents per share, the company’s market capitalisation works out to around S$41.6 million.

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After deducting listing expenses, the net proceeds of S$4.5 million will be used for the expansion of its network of clinics and medical facilities, acquisitions, joint ventures and/or strategic alliances as well as investing into technology systems and expanding its pharmaceutical services business.

The invitation will close at noon on May 29, with trading of Alliance’s shares scheduled for 9 am on May 31.

While the group does not have a fixed dividend policy, the board of directors intends to recommend and distribute dividends of at least 30 per cent of its net profits after tax (excluding exceptional items) for FY 2020 and FY 2021.

Dr Thng, executive chairman and CEO of Alliance Healthcare, said: “The listing of our company is timely, as we seek to further enhance our standing in the expanding healthcare space, driven by, among others, an ageing population and a rising regional healthcare demand for specialist care treatment and high-end medication.”

Founded in 1994, the group provides healthcare services in Singapore through four key business segments – managed healthcare solutions, GP clinic services, specialist care services and pharmaceutical services.

For the financial year ended June 30, 2018, Alliance Healthcare’s revenue increased by nearly 15 per cent year on year to S$33.8 million, while net profit more than doubled to S$3.1 million.