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HC Surgical Specialists offers 30m new shares at S$0.27 apiece
MEDICAL services group focusing on endoscopic procedures, HC Surgical Specialists Limited (HCSS) has offered 30 million new shares at S$0.27 apiece in its initial public offering (IPO) on the Catalist board of Singapore Exchange (SGX).
At S$0.27 each, the new share is priced at a multiple of 12.5 times the group's audited earnings per share (EPS) of 2.16 Singapore cents for the financial year 2016, said the final prospectus registered with the SGX on Tuesday.
The calculation of EPS excludes listing expenses incurred in FY2016 of about S$0.43 million and the pre-placement share capital of 116.3 million shares.
Trading in the company's shares on Catalist is expected to start at 9am on Nov 3, 2016.
The net proceeds raised of about S$6.15 million will mostly be used for the expansion of the group's business operations locally and regionally. The remaining proceeds will fund the expansion of its surgical facilities and general working capital purposes.
The group's net profit has declined from S$3.4 million in fiscal year ended May 31, 2014, to S$2.7 million in FY2016. Revenue has grown from S$6.9 million in FY2014 to S$7.9 million in FY2016.
HCSS said that it intends to pay out at least 70 per cent of its profit after tax as dividends for FY2017, FY2018 and FY2019, as a reward to shareholders.
The group is led by specialist surgeons, Heah Sieu Min - who is the chief executive, and Chia Kok Hoong - who is the chief operating officer.
HCSS operates a network of clinics throughout Singapore. Common conditions treated by the group include haemorrhoids, gallstones and inflammation of the gallbladder, hernias, colorectal cancer, stomach cancer and colonic diverticular disease.
PrimePartners Corporate Finance Pte Ltd is the issue manager, sponsor and placement agent.