Biolidics launches IPO to raise S$6.1m

Singapore

MEDICAL technology company Biolidics on Tuesday launched an initial public offering (IPO) of 27.5 million new shares at S$0.28 each. The placement is in conjunction with its proposed listing on the Catalist board on Dec 19.

The shares will be placed out to retail and institutional investors in Singapore, and represent 11.34 per cent of the company's enlarged share capital. Upon completion of the IPO, Biolidics' market capitalisation is expected to be S$67.9 million.

Of the net proceeds of S$6.1 million, the company plans to use S$2.7 million to expand its clinical services applications and clinical services customer segment, and another S$2.4 million to advance its pipeline products. The rest will be for general corporate and working capital purposes.

The placement will open on Dec 11 and close at noon on Dec 17.

In a media briefing, executive director and CEO of Biolidics Ivan Lew said that in Asia, dietary changes coupled with the increasing and ageing population have resulted in an increase in cancer rates.

This, along with rising healthcare expenditure, will drive the global market for cancer diagnostics. The market is expected to grow at a compound annual growth rate (CAGR) of 7.6 per cent to reach an estimated value of US$168.6 billion by 2020.

As for liquid biopsies - the analysis of circulating tumour cells in blood samples - the market is expected to grow in tandem from about US$0.6 billion in 2016 to US$1.7 billion in 2021, at a CAGR of 23.4 per cent.

Biolidics currently derives revenue from selling its ClearCell FX1 System, a fully automated medical device which uses a patented technology to separate cancer cells from blood, the accompanying CTChip FR1 biochip and other consumables to academic and research institutions, hospitals and laboratories.

Demonstrating how it works, Mr Lew said: "I like to use (the example of) a Nespresso machine and Nespresso capsule. It is single use ... for each test, you have to buy a chip, and consumables that only recognise use by our machine."

After the placement, among Biolidics' main shareholders, Catalist-listed integrated healthcare group Clearbridge Health will own 24.8 per cent; Seeds Capital, wholly owned by Spring Entity Investments, which is owned by statutory board Enterprise Singapore, will own 10.67 per cent; while Professor Xie Tian, Dean of the Department of Medical Oncology, Holistic Integrative Oncology Institute and Holistic Integrative Cancer Center of Traditional Chinese and Western Medicine in Hangzhou Normal University, will own 0.64 per cent.

United Overseas Bank is the sponsor, issue manager, and placement agent for the IPO.