THE Orthopaedic Centre, a group of four orthopaedic specialists with four clinics across Singapore, is planning an initial public offering (IPO) on the Singapore Exchange that could raise more than S$10 million.
The group lodged a draft prospectus for a listing on the Catalist board on Wednesday, under a new name, Asian Healthcare Specialists (AHS).
The size of the IPO has not been announced but market sources said that AHS plans to raise more than S$10 million and is eyeing a market cap of around S$65 million.
AHS will be issuing new shares through a placement exercise so there is no public tranche.
In the 12 months ended Sept 30, 2017, AHS made a net profit of S$438,000, on revenue of S$11 million.
If the service fees paid to the group's specialists had been replaced with employment agreements during this period, net profit would have been S$4.46 million, AHS said. The specialists have since entered into employment agreements with AHS.
IPO proceeds will be used to expand the business organically as well as through mergers and acquisitions. Some proceeds will also go towards working capital.
The Orthopaedic Centre was founded in 2013 by Dr Chin Pak Lin, Dr David Su Hsien Ching and Dr Tan Chyn Hong. Dr Yue Wai Mun joined in 2015.
These four doctors currently control 97 per cent of AHS through a shared entity, AHS Investments.
The remaining 3 per cent stake is held by Dr Lim Cheok Peng, a former managing director at Malaysian hospital operator IHH and former chief executive of Parkway Holdings. Dr Lim received the shares in return for his consultancy services. AHS Investments has a right of first refusal to buy Dr Lim's stake.
RHT Capital is the issue manager and sponsor for the listing. UOB Kay Hian is the placement agent.