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Hyphens Pharma prices Catalist IPO at S$0.26 a share to raise S$13.5m
HYPHENS Pharma International, which sells specialty pharmaceutical products, is seeking to raise S$13.5 million in net proceeds ahead of a listing on the Singapore Exchange's Catalist board.
Hyphens is offering a total of 29.6 million shares at S$0.26 apiece.
The pubic offer comprising 3 million shares opened at 9pm on Friday and closes next Wednesday at noon. Trading will commence next Friday.
Last year, Hyphens made a net profit of S$6 million, up 16 per cent from 2016 as revenue rose 12 per cent to S$113 million.
At S$0.26 a share, Hyphens has a price-to-earnings ratio of 13 times. It will have a market cap of S$78 million immediately upon listing.
A bulk of last year's revenue, or 54 per cent, came from selling and marketing products used by medical specialists, through exclusive distributorships or licensing and supply agreements with brand owners.
In particular, sales of Biosensors coronary stents, Sofibel nasal sprays and Guerbet contrast agents that are used in X-rays and similar imaging techniques accounted for 33.4 per cent of group revenue last year.
Singapore and Vietnam are Hyphen's largest markets. It has a small presence in Malaysia, Indonesia and the Philippines.
In Singapore, Hyphens is also a wholesaler of pharmaceuticals and medical supplies through Pan-Malayan, a hypermart for clinics and pharmacies. Revenue from this segment accounted for 35 per cent of group revenue last year.
Hyphens also derived 11.4 per cent of revenue last year from sales of its own in-house proprietary brands, such as the Ceradan brand of creams for eczema. In 2016, Hyphens acquired Ocean Health, the health supplement brand, as well as the TDF skincare brand.
Chairman and chief executive Lim See Wah, who is a pharmacist, said that S$7 million of the IPO proceeds would be used for business expansion. Hyphens is expanding its proprietary brands segment, with plans to launch five products this year.
Another S$3 million will be used to consolidate operations in Singapore into one building with an automated packaging facility. This will be set up before the end of the year, Mr Lim said.
Hyphens announced three cornerstone investors.
Nikko Asset Management Asia, Qilin Asset Management and Maxi-Harvest Group have subscribed for 10.1 per cent of Hyphens. That leaves 9.9 per cent of the company in public hands.
DBS is the sponsor and issue manager for initial public offering.