Singapore-based healthcare company Alliance Healthcare had a tepid debut on the SGX’s Catalist board on Friday with its shares ending the day flat.
It raised S$6.4m (US$4.65m) by selling 32m shares at S$0.20 per share. The new shares represent 15.4% of the company’s share capital post IPO to give it a market cap of S$41.6m.
Founded in 1994, the group has four main business segments: managed healthcare solutions, GP clinic services, specialist care services and pharmaceutical services.
Last year the group doubled its profits to S$3.5m on revenues that rose 14.9% to S$33.8m.
“With an enlarged capital base from our successful listing, we are now well-positioned for the continued expansion of our business,” said chief executive and founder Barry Thng.
Proceeds will be used to expand the group’s network of self-owned GP clinics, specialist care services and medical facilities in Singapore, as well as for expansion.
Alliance shares opened up 2.5% higher at S$0.205, but after lunchtime had settled back at the IPO price of S$0.20.
Traders have been cool on the deal with the majority expecting it to continue to trade in the range of S$0.20 to S$0.25. “The weak IPO and market sentiments will weigh down the counter. In any case, the public offering is pretty small at 1m,” said one.
Even though the S$1m public share was oversubscribed 3.8 times, it was a small component of the 6.4m shares on offer, the majority of which remain with Alpine Investment Holdings, which is owned by the founders of Alliance Healthcare.
CIMB is the sponsor and issue manager with CGS-CIMB Securities as underwriter and placement agent.