Aoxin Q&M Dental Group offers 57m shares at S$0.20 each

AOXIN Q&M Dental Group is offering 57 million placement shares at S$0.20 apiece in its initial public offering (IPO), as it seeks to raise net proceeds of about S$9.1 million.

In its final offer document filed on Tuesday, the company, a dental business in China that was spun off from listed entity Q&M, said application closes at noon on April 24. Trading will begin on April 26.

The placement shares are made available to retail and institutional investors who apply through their brokers or financial institutions, Aoxin said.

Its main shareholders are Q&M Dental Group (Singapore) Limited, which owns a 54.7 per cent stake, and its executive director and chief executive Shao Yongxin, who holds a 36.61 per cent stake.

It added that the bulk of funds raised from this Catalist listing of about S$6.4 million would go into expansion of its business through organic growth, mergers and acquisitions, joint ventures and partnerships.

The remaining amount of S$2.7 million is meant for "enhancement of infrastructure and working capital purposes".

For FY15 ended December, Aoxin recorded a net profit of 540,000 renminbi (about S$109,900), while revenue came in at 46.5 million renminbi, up 87.5 per cent year on year.

For the first nine months of FY16, it posted a net loss of RMB102,000 on revenue of 61.5 million renminbi.

In its filing, Aoxin cautioned that it is "subject to strict regulations for our operations and changes in government policies relating to healthcare reforms", that its business may be affected if the dental centres lose their accreditation or if there are any changes to the Chinese public health insurance programmes.

Other risk factors include its reliance "on certain key management personnel", namely the experience and leadership of Dr Shao.

The placement is managed by SAC Capital, who is also the sponsor and issue manager.