Niks Professional lodges preliminary prospectus for Catalist IPO
Sharanya Pillai
NIKS Professional, a Singapore-based provider of dermatology and aesthetic medical services, on Friday (Sep 29) lodged a preliminary prospectus for a Catalist listing.
Founded in 1998 by a husband-and-wife team, the company has three clinics across Singapore: in Orchard, Jurong East and Tampines. Its five doctors offer medical consultation and services such as light and laser procedures, injectables and mole removals.
The company is led by co-founder Cheng Shoong Tat, who holds the chairman and chief executive positions. His wife, Dr Ong Fung Chin, started her own clinic in 1994 and serves as Niks Professional’s president and chief medical officer.
Both Cheng and Dr Ong are controlling shareholders, although their stakes have not been disclosed.
Besides clinics, the company has three retail outlets that sell Niks skincare products and provide facial services. It also distributes Niks skincare products to 11 regional agents in China, covering 13 provinces and one city.
Niks Professional recorded S$2.8 million in net profit for FY2022, down from S$3.3 million the previous year. Its FY2022 revenue stood at S$11.1 million, down 5.2 per cent.
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“(We) were affected by (the) cancellation of some appointments for medical and facial treatments by our patients and customers who resumed their overseas travels for various purposes,” the company said of its FY2022 results in the prospectus.
Other factors impacting performance were an “extended break” taken by one of its key doctors in FY2022, as well as China’s Covid-19 lockdowns during the year.
It posted a net profit of S$518,000 for Q1 this year, down 35.3 per cent, while recording an 8 per cent fall in revenue to S$2.6 million. While Niks Professional saw increased patronage from patients, it was also hit by a decline in consumer confidence amid China’s economic uncertainty.
The company has S$25.8 million in assets as at Mar 31, and S$3 million in liabilities.
With the initial public offering (IPO), Niks Professional plans to open new clinics in the north and west regions of Singapore, add to its headcount, purchase new equipment, and also expand its skincare product-distribution business in China.
“We also intend to increase our efforts in engaging direct sales to doctors and end-customers in China, which we believe will fetch better margins (compared with) sales through regional agents,” the company said.
It may also expand through acquisitions, joint ventures or strategic alliances with parties whose businesses are synergistic or complementary, such as general practitioners with a special interest in dermatology.
Besides Dr Ong and Cheng, Niks Professional’s board comprises three independent directors: Mark Andrew Yeo Kah Chong, Manu Bhaskaran and Tan Teck Huat. Yeo is the lead independent director and also serves as deputy chairman.
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