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Fullerton Healthcare defers IPO in light of market uncertainty
MANAGED care provider Fullerton Healthcare Corp said on Monday it will defer plans for its initial public offering (IPO) on the main board of Singapore Exchange (SGX) in the light of current market uncertainty.
The move comes "despite significant interest from high-quality international investors during the book-build, which was heavily over-subscribed".
The company said it will continue to re-assess equity capital market options in 2017, subject to market and other conditions at the time.
It also expects continued strong organic growth and double-digit year-on-year increases in both revenues and operating profit for 2016.
The company added it will continue to target certain acquisitions, funded from its strong balance sheet and existing cash flows.
"Without any immediate need to access the equity capital markets to fund its growth plans, the company will meanwhile continue to assess the various options available which will providing the flexibility to pursue any more significant acquisition opportunities that may arise," it said.
Its chief executive Michael Tan said the IPO process has been valuable and the team will continue to explore further opportunities for operational expansion.
"We remain committed to our mission to transform Asian healthcare, making it affordable and accessible to those we serve," he said.
Fullerton Healthcare helps clients such as insurers and other corporates manage healthcare costs, and had filed its draft prospectus in late September.
Its plan was for an October listing but this was delayed after both SGX and the Monetary Authority of Singapore received a series of letters signed off by concerned doctors and investors.
The complaints centred mostly on the corporate healthcare company's business, which charges doctors who join its panel a percentage fee.
They came after the Singapore Medical Council in September released its new Ethical Code and Ethical Guidelines that take effect from Jan 1. The revised code frowns upon the industry practice of taking a percentage of the bill.