Temasek-backed Foundation Healthcare lodges preliminary IPO prospectus

[SINGAPORE] Foundation Healthcare Holdings lodged a preliminary prospectus on Monday (Jun 22) for a listing on the mainboard of the Singapore Exchange.

The private healthcare company, which operates 74 specialist clinics in Singapore, is backed by Temasek’s investment firm SeaTown Holdings.

According to the prospectus, the offer will comprise an international placement to institutional and other investors, alongside a public offer in Singapore. The offer size, price ​and listing date were not disclosed in the document.

The transaction will consist of new shares issued by the company and vendor shares offered by existing stakeholders.

The vendors include SeaTown Private Capital Master Fund, its co-investors Kuik and KCM Investments, as well as Foundation Healthcare’s executive management team comprising chief executive Liaw Yit Ming, chief operating officer Lee Hong Huei and chief commercial officer Choy Shook Yee.

Ahead of the launch, the group had locked in S$118,245,000 in total commitments from 10 cornerstone investors.

The cornerstone line-up includes Amova Asset Management Asia, Aregence Capital Management, Granite Asia IX VCC, Hood River Capital Management and the International Finance Corporation.

They are joined by Lion Global Investors, Manulife Investment Management (Singapore), Orbit Master Holdings, RBC Global Asset Management (Asia), and UBS acting through its Singapore branch.

Before the official prospectus was lodged, people familiar with the matter had told Bloomberg that the company is seeking to raise as much as S$500 million in the initial public offering, which could value it at more than US$1 billion.

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Net proceeds raised from the issue will be used for funding investments in, and acquisitions of, clinical practices and medical centres in Singapore, according to the prospectus.

Proceeds will also be used to support expansion plans in new geographies, and for other general corporate and working capital purposes.

Founded in 2023, Foundation Healthcare covers 16 distinct medical specialities across its clinics.

The company also owns and operates four domestic medical centres.

These comprise two day surgery centres – Foundation Ambulatory Centre (Novena) and Foundation Ambulatory Centre (Orchard); a radiology and imaging centre known as Foundation Imaging; and a fertility centre operating as Care IVF.

The group is eyeing regional expansion. The prospectus identifies Malaysia and Hong Kong as potential targets based on their private healthcare demand fundamentals, demographic trends and regulatory structures.

“We intend to expand regionally on an opportunistic basis, particularly in markets that share similar demand fundamentals and demographic trends in Singapore,” said Liaw in a previous interview with The Business Times.