ISEC Healthcare

ISEC Healthcare: Priced its listing offer of 70m placement shares at $0.28 each, implying valuation of 21.2x FY13 P/E compared to its S'pore and M’sia listed peers of 30.3x. Placement application will close on 23 Oct, with the counter to make its trading debut on 28 Oct. ISEC is a comprehensive medical eye care service provider that specialises in cataract and refractive surgery (including LASIK), vitreoretinal diseases, corneal and external eye diseases, glaucoma, uveitis, oculoplastics, facial cosmetics and aesthetics surgery, adult strabismus and paediatric ophthalmology. In Malaysia, ISEC has two ambulatory surgical centres located in KL and Penang. In Singapore, the group has an eye clinic in Mount Elizabeth Novena Hospital, as well as operations in Gleneagles Hospital. The ophthalmology (eye anatomy) industry is in a structural growth phase, underpinned by an ageing population, rising income levels and growing medical sector. In Malaysia, the healthcare sector has been identified as a National Key Economic Area, with expenditure estimated to grow 7% CAGR from $12b in 2008 to $23.5b in 2018. Meanwhile, ballooning sector expenditure in Singapore is expected to quadruple to $32.1b in 2018 from $8.1b in 2008, implying a CAGR of 14.8%, buoyed by an ageing demographic. Going forward, the group has earmarked $13.8m from the offer proceeds to expand operations into Asia Pac region - namely Indonesia, Myanmar, Philippines and Taiwan. Investment risks include non-renewal of a service agreement with Parkway Hospitals that expires Aug ’19 (accounted for 41%-50% of FY11-13 gross profit). Included the Factsheet on the Files panel on the left.