Foundation Healthcare closes 7.9% below IPO price in mainboard debut
Its public offer of 162.6 million shares is 3.8 times subscribed at S$0.76 a share
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[SINGAPORE] Shares of multispeciality healthcare group Foundation Healthcare ended its first trading day at S$0.70 on Wednesday (Jul 8), 7.9 per cent below its initial public offering price.
In the morning, the counter rose 0.7 per cent to open at S$0.765, S$0.005 above the initial public offering price.
The debut follows a 3.8 times subscription of its public offer of about 162.6 million shares available.
For the Singapore public offering, Foundation Healthcare received 3,805 valid applications for 87 million shares. This amounted to S$66.1 million at a 9.4 times subscription. About 9.2 million shares were available for subscription.
The international offering was 3.5 times subscribed, receiving interest for around 531.7 million shares for the 153.4 million shares available.
In total, the IPO raised gross proceeds of S$242 million, including commitments from 10 cornerstone investors.
Shareholders include long-term institutional investors, insurers and fund managers who are part of Singapore’s Equity Market Development Programme, said Liaw Yit Ming, executive director and CEO of Foundation Healthcare.
The Temasek-backed company said on Jul 1 that it sought to raise S$242 million with an offer of 162.6 million shares.
The IPO’s net proceeds will primarily fund investments and acquisitions of specialist practices and medical centres in Singapore. They will also go towards expansion plans in new markets, and general corporate and working capital purposes.
Jefferies Singapore, OCBC, UBS Singapore, DBS and UOB were the underwriters of the offering.
Foundation Healthcare is Singapore’s largest private multi-speciality healthcare platform. It was established in 2023 with backing from SeaTown Holdings, itself owned by Temasek’s asset management group Seviora.
Liaw said: “We remain committed to expanding our network of specialists and medical centres, enhancing care coordination and accessibility for patients, and extending our integrated model into new geographies, including Hong Kong and Malaysia.”
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