Australia: Britain’s Doctor Care Anywhere to list on ASX

The Covid-19 pandemic remains good business for digital health providers. The latest to take advantage of attention on the sector is Britain’s Doctor Care Anywhere (DCA) which intends to raise A$102m (US$71.4m) listing on the ASX at the beginning of December.

This is upsized from the company’s original plans to raise A$75m.

It is to sell 127.5 million CDIs at A$0.80 per share. This should give the company a market capitalisation of A$254.8m.

A CDI is a British investment listed on an exchange outside the UK.

“DCA has grown rapidly since its inception, providing services to more than 1,500 corporate and SME clients through its major channel relationships,” said chairman Jonathan Baines.

Funds raised will be used for investment in marketing and engagement capabilities; investment in new services to drive growth in existing markets; and building international business development capabilities to pursue growth in new markets.

While revenues have been booming – they were up 70% in the first half of the year to £4.6m (US$5.9m), the company remains unprofitable. Losses more than doubled over the same period to £5.5m.

The company raised A$23m in pre-IPO funding from institutional investors Thorney, Regal Funds Management and Perennial Value in July.

Nonetheless, the metrics of the sector speak for themselves. The global telehealth market is estimated to have generated US$5.3bn in revenues in 2019 and is forecast to grow at 23.1% a year to reach US$14.9bn by 2024.

This growth is what is behind the rush of digital health providers to IPO. In Australia Aroa Biosurgery and 4DMedical have both seen their share prices more than double since listing earlier this year. And in Hong Kong, for example, JD Health and WeDoctor are both expected to raise upwards of US$2bn each before the end of the year. While

The deal is fully underwritten by lead manager Bell Potter Securities. Aurenda Partners is co-manager.