Singapore Institute of Advanced Medicine Holdings to raise S$26.2 million in Catalist listing

CANCER treatment provider Singapore Institute of Advanced Medicine Holdings (SIAMH), a unit of Bursa Malaysia-listed Berjaya Group, is offering 114 million shares at S$0.23 apiece as it seeks to list on the Catalist board of the Singapore Exchange.

The 114 million shares comprise around 109.6 million placement shares and about 4.4 million public shares.

The new shares will represent approximately 11 per cent of the company’s enlarged share capital.

The company will raise S$26.2 million in gross proceeds, with net proceeds coming to S$21.7 million. Of the latter, 57.2 per cent will go towards repaying bank borrowings; 24.8 per cent towards working capital; and 0.8 per cent for the acquisition of new equipment and facilities and upgrading of systems.

Based on the issue price of S$0.23, SIAMH will have a market capitalisation of S$231.8 million at listing.

Incorporated in 2011 and founded by Dr Djeng Shih Kien, SIAMH focuses on diagnosing and treating various diseases and health conditions, including cancer as well as neurodegenerative and cardiovascular diseases.

Through its clinics in Biopolis Drive and Lucky Plaza, it offers a suite of services, including radiotherapy, diagnostic imaging, theranostic services as well as radiopharmaceutical and oncology for the early treatment of cancer and other diseases.

Holistic treatment

Dr Djeng said the company aspires to become a “one-stop ambulatory treatment centre” for cancer, grouping all relevant services under one roof.

Noting that cancer patients often receive contrasting information from different care providers, he said: “We want to provide a location where patients can find all the answers.”

For example, at the Biopolis Drive flagship, patients can undergo diagnostic imaging in one wing to pinpoint the precise location of the cancer cells, then move to another area to start their radiotherapy sessions.

There are also areas for doctors to offer health screenings, mammograms and other related services, so patients do not have to be shuttled to multiple locations.

In the near future, the group is planning to add a space for ancillary services, such as a patient lounge and kitchen to offer nutritional meals and advice, Dr Djeng, who is also executive director and chief executive, told The Business Times.

A dentist by training, Dr Djeng is no stranger to the healthcare scene. His previous ventures include the integrated Farrer Park Hotel, where he worked with Malaysian conglomerate Berjaya Group.

A long-term relationship with the group led to it backing Dr Djeng’s SIAMH – the group’s controlling shareholders are Berjaya Group subsidiaries Espeetex and Berjaya Leisure (Cayman).

The offer document states that Espeetex also intends to subscribe for 13 million invitation shares, or around 1.3 per cent of the total number of issued shares. Its stake will be 24.5 per cent after the initial public offering.

New tech

Dr Djeng said he has always been interested in bringing “the latest health technology” to his patients for early and accurate diagnosis of severe illnesses.

In particular, SIAMH in June 2023 started proton beam therapy, which is considered more accurate than traditional radiation therapy as the proton beams entering the body are able to pinpoint the exact location of the cancer cells.

The group uses the Varian ProBeam Compact System created by US-based Varian Medical Systems Pacific. The system is housed in an underground concrete bunker for radiation protection.

The uncommon treatment is what draws medical tourists, said Dr Djeng, highlighting that the group has seen visitors from countries such as Vietnam, Indonesia and Australia.

Starting this new service was also a reason the group expanded its headcount, which accounted for the higher operating expenses and resultant net loss in its most recent financials.

For FY2023, SIAMH widened its net losses to S$18.1 million, from S$12.4 million in FY2022.

Revenue from continuing operations – which excluded profit from disposed investment properties – was S$16.2 million, up 17.6 per cent from S$13.8 million the previous year.

Dr Djeng noted that Covid-19 had posed a challenge to the group as it forced the construction of the bunker to be delayed. The group had also hired “a lot of staff” just before the pandemic struck.

However, the group is now “ramping up operations”, reflected by an increasing number of patients, he said.

Dr Djeng is also confident there will be “very little capital expenditure” in the near future, as the technology they had spent on prior to listing will last the company at least five to six years.

Applications for SIAMH’s shares close at noon on Feb 14. The shares are expected to commence trading on a ready basis at 9 am on Feb 16.