Singapore: Ardmore Medical Group delays SGX listing

Sean Ng, chief executive, Ardmore Medical

Ardmore Medical Group, a specialist in orthopaedic surgery, pain management, and aesthetic treatments, has pulled its listing on the Singapore Exchange’s Catalist board.

In a statement it blamed current market conditions but said that: “we remain committed to delivering results that will bring a good value proposition to our investors should we decide to tap the capital markets”.

Uncharacteristically the IPO has not had much support from local media. The Business Times has called into question the business case for an flotation several times emphasising that founder and chief executive Sean Ng accounts for around 43% of both profits and group revenue. Bankers away from the deal have also been unenthusiastic.

This leaves the SGX with only one healthcare IPO so far this year. At the end of May, Alliance Healthcare raised S$6.4m (US$4.6m) by selling 32m shares at S$0.20 per share. CIMB was the sponsor and issue manager with CGS-CIMB Securities as underwriter and placement agent. Its secondary performance has not filled investors with joy. Alliance shares have traded in a narrow band of S$0.21-S$0.19 since then.

Yesterday they slipped 5.1% to S$0.19.

Nonetheless, the IPO market itself is ebullient. Singapore saw nine IPOs in the first half of the year, with S$1.55bn raised and a IPO market capitalisation of S$2.24bn, according to Deloitte. This is up 182% on the same period last year, which saw seven IPOs of S$548m proceeds with an IPO market capitalisation of S$1.98 billion.

Headed by Ng, Ardmore has five doctor and operates four medical clinics and one medical spa in Mount Elizabeth Medical Centre, Farrer Park Medical Centre, and International Building.

Last year, total profits rose 62% to S$3.2m on revenues that jumped 60% to S$8.9m.

SAC Capital was the sponsor and issue manager for Ardmore.