SINGAPORE (Mar 29): Asian Healthcare Specialists, a group of five orthopaedic specialists operating four The Orthopaedic Centre clinics in Singapore, has lodged a draft prospectus for an initial public offering (IPO) on the Catalist board of the Singapore Exchange.
There will not be a public tranche as AHS will be issuing new shares through a placement exercise which will be made available to retail and institutional investors in Singapore.
While the size of the IPO has not been announced, AHS says proceeds will be used to expand its business through acquisitions, joint ventures or strategic alliances, as well as to invest in synergistic businesses and to invest in management and healthcare professionals.
AHS is primarily engaged in the provision of a comprehensive range of orthopaedic, trauma and sports services – both surgical and non-surgical.
Common medical problems treated by the group include fractures, torn ligaments, compressed nerves, “slipped discs”, and sports injuries such as golfer’s elbow.
For the FY17 ended September, AHS posted earnings of $438,000 on the back of revenue of $11.0 million.
The group reports that adjusted net profit would have been $4.5 million in FY17, if the consultancy service fees paid to the group's specialists had been replaced with employment and service agreements during this period.
As at end September, cash and cash equivalents stood at $2.1 million.
“We are well-positioned to capture the growing demand for private orthopaedic services arising from an ageing population, rising income levels and an increase in the number of insured patients,” AHS says.