Caring Pharmacy Group Bhd is offering for sale 35 million new shares at RM1.25 each to raise RM43.75m as it seeks a listing on the Main Market of Bursa Malaysia Securities.
It is offering 10.88 million new shares to the public while 5.71 million would be offered to eligible directors and employees, another 4.2 million shares offered to approved Bumiputera investors.
The pharmacy chain operator said that the remaining 14.198 million shares could be placed out.
The RM43.75mil, 41% of the proceeds would be used for new pharmacy outlets while 26.76% would be used for working capital.
The proceeds will goes towards increasing the number of the chain’s pharmacies across Penang Malaysia as well as working capital and renovation of the group’s head office and warehouse.
On its dividend policy, shareholders can expect dividends of not less than 30% of its annual profit.
The pharmacy is ranked amongst the top three community pharmacy operators in Malaysia with an estimated market share of 4% based on the number of community pharmacy outlets.
Based on its IPO price and enlarged issued and paid-up share capital of 217.7 million shares, its total market capitalisation is about RM272.133mil.
The IPO price of RM1.25 per share represents a premium of 172% to the pro forma consolidated NA per share, and price to book ratio of about 2.72 times.
Based on its profit after tax and minority interest of RM20.55mil for 2013 and its enlarged issued and paid-up share capital of 217.7 million shares upon listing, its net price-to-earnings stood at 13.24 times.
Currently (Oct 2013), Motivasi Optima owns a 60% stake in Caring and BJCorp founder Tan Sri Vincent Tan holds a 20.35% stake.
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