Q&M to restructure stake in Chinese manufacturer ahead of potential IPO

Q&M Dental Group (Singapore) plans to restructure its stake in Qinhuangdao Aidite High Technical Ceramic Co ahead of a possible listing of the China-based manufacturing subsidiary.

As part of the restructuring, Aidite will reduce its equity capital to 23.97 million yuan (S$ from 47 million yuan.

Q&M, which runs a chain of dental clinics, will pay Aidite founders Li Hongwen and Li Bin a total of 28.79 million yuan to cancel an option that had been granted by Q&M's Chinese subsidiary to each of the founders to buy 24.5 per cent of the shareholding of Q&M Aidite.

Aidite shall then place out sufficient shares to the founders such that Li Hongwen will have a 29 per cent stake in Aidite and Li Bin will have a 20 per cent stake, for a total issue price of 23.03 million yuan.

Following the placement, Q&M's equity interest in Aidite will be reduced to 51 per cent from 100 per cent.

Q&M will seek shareholders' approval for the deal.