Medical support services provider Medinex eyes all-placement Catalist IPO

MEDICAL support services company Medinex is seeking a listing on the Catalist board of the Singapore Exchange to raise money for expansion and possible acquisitions.

The IPO will be an all-placement deal that will comprise new shares and vendor shares sold by existing shareholders, according to the preliminary offer document.

Medinex's existing controlling shareholders are its executive director and chief executive Jessie Low, with 26.04 per cent; HC Surgical Specialists Limited, holding 32.76 per cent; and Shinex Capital, holding 6.42 per cent.

After subtracting expenses linked to the IPO, Medinex plans to use the funds raised from the listing for business expansion via potential acquisitions, joint ventures and the expansion of their marketing and business development team. After listing, Medinex may acquire human resources consulting services group Ark Leadership, which is wholly owned by Valerie Low, the sister of Medinex's Ms Low.

Ark Leadership, which is a key supplier for Medinex, has agreed to give Medinex a right of first refusal on the entire issued and paid-up share capital of Ark Leadership.

Medinex specialises in providing professional support services to medical clinics, helping its clients to set up clinics, obtain licenses and to provide business functions such as accounting and human resource management. The company also provides pharmaceutical services, assisting clients in procuring medical and pharmaceutical products.

The company does not have any fixed dividend policy, but the board intends to recommend and distribute dividends of at least 70 per cent of its profit after tax for each of financial year 2018, 2019 and 2020, the document said.

Medinex reported S$1.06 million net profit attributable to shareholders for half-year 2018, up from S$583,000 a year ago.

The sponsor and issue manager for the IPO is Novus Corporate Finance, while UOB Kay Hian has been hired as placement agent.