Singapore O&G: (S$0.455) Phenomenal trading debut
Phenomenal trading debut for niche healthcare provider Singapore O&G, which opened 82% above the offer price of $0.25.
The invitation for 43.6m new shares (41.4m placement shares and 2.2m public offer shares) was 17.7x subscribed.
Under the placement tranche, 7m shares (3.2% total share capital) were allotted to Havenport Asset Management, which sub-manages the Legg Mason Asian open funds.
Singapore O&G has seven specialists that provide women and children healthcare services, which include obstetrics & gynaecology, gynae-oncology, breast and surgicare.
The group currently has operations across nine medical centres in Singapore.
Net proceeds of $9.2m is primarily for investments in healthcare professionals and expansion of business operations both locally and regionally, either through organic means, JVs or acquisitions.
Specifically, Singapore O&G sees significant potential in Myanmar, Indo-China, Malaysia and certain parts of China.
The group intends to distribute dividends of up to 90% of FY15's net profit, which translates to an indicative 3.8% yield based on last year's earnings.
At $0.455, Singapore O&G is valued at 23.3x historical P/E, compared to closest peers Talkmed (18.4x) and ISEC (77.8x).
No comments:
Post a Comment