- Dedicated to making high quality private healthcare accessible to the broadest consumer base possible- Intends to distribute at least 70% of profit after tax as dividends for FY2017, FY2018 and FY2019- Placement of 30,000,000 Placement Shares at S$0.27 each
SINGAPORE, Oct 25, 2016 - (ACN Newswire) - HC Surgical Specialists Limited ("HCSS" and together with its subsidiaries, the "Group"), a medical services group primarily engaged in the provision of endoscopic procedures, including gastroscopies and colonoscopies, and general surgery services with a focus on colorectal procedures, has launched its Initial Public Offering ("IPO") in conjunction with its proposed listing on the Catalist board ("Catalist") of the Singapore Exchange Securities Trading Limited ("SGX-ST").
Led by specialist surgeons, Dr. Heah Sieu Min (Chief Executive Officer) and Dr. Chia Kok Hoong (Chief Operating Officer), and supported by a team of experienced specialist surgeons and general practitioners, HCSS operates a network of clinics throughout Singapore. Its clinics are located across central Singapore in certain private hospitals and in residential areas, including the heartlands, and are close to public transportation. Its specialist surgeons also operate evening clinics, which enhances the Group's accessibility to patients at any time of the day. Common conditions treated by the Group include haemorrhoids, gallstones and inflammation of the gallbladder, hernias, colorectal cancer, stomach cancer and colonic diverticular disease.
The Group's clinics offer an extensive range of endoscopy and general surgical procedures. Most of its clinics are fully equipped to provide a comprehensive suite of diagnostic and therapeutic endoscopic procedures, excision of lumps and removal of polyps, as well as other minor surgical services on site. The centres are Medisave accredited ie medisave funds may be used to offset procedure costs and Medishield Insurance coverage may apply as well.
Dr. Heah and Dr. Chia collectively have over 40 years of experience, and both have received several awards and accreditations throughout their careers. Their active involvement in the day-to-day operations of the clinics enables the Group to increase its responsiveness to its patients. Each of the Group's other specialist surgeons also have extensive track records.
To reward shareholders for participating in the Group's growth, HCSS intends to pay out at least 70.0% of its profit after tax as dividends for FY2017, FY2018 and FY2019.
Prospects and Future Plans
The rising affluence in Singapore increases the affordability of private healthcare services. Higher educational standards may also increase the awareness of, and drive the demand for, high quality and comprehensive medical services. With an ageing population in Singapore, there could be a corresponding increase in the incidence of certain diseases such as colorectal cancer, which may translate into a greater demand for medical services. The ageing population has also led to changes being made to the national insurance scheme, including an increase in the coverage age under MediShield. In addition, increasing healthcare costs and greater interest in healthcare services has led to a growing demand for private healthcare insurance. As a result, Singaporeans are becoming more well-insured, which could increase their willingness to seek out private healthcare services.
Besides diversifying its patient base to include more corporate clients, the Group plans to expand its business locally through organic growth, entering into joint ventures or through acquisitions of other clinics, surgical specialists and general practitioners. It also intends to extend its capabilities by setting up day surgery centres equipped with surgical facilities for, among others, general surgery, orthopaedics, dental services and aesthetic procedures.
On the regional front, HCSS plans to bring its medical services into Vietnam. It has entered into a non-binding memorandum of understanding with the Transport Hospital in Hanoi, Vietnam, to provide consultancy and training services. The Group will also assist the Transport Hospital in establishing a day surgery and endoscopy centre, where its specialist surgeons will have exclusive rights to perform surgical and endoscopic procedures.
Dr. Heah said, "The Group will continue to expand our network of clinics and extend our capabilities, in line with our vision to develop an organisation dedicated to reaching out to the broadest consumer base possible. Most of our specialist clinics are equipped to perform endoscopy and minor surgical procedures safely, seamlessly and with a reduced waiting time, thereby adding convenience for patients. We intend to continue contributing to our nation by making high quality, affordable healthcare accessible to our growing population."
30,000,000 new shares are being offered (the "Placement Shares") for subscription by way of placement at the issue price of S$0.27 per share (the "Issue Price"). The Placement Shares, upon issue and allotment, will rank pari passu in all respects with the existing issued shares of the Company.
Trading in the Company's shares on Catalist is expected to commence at 9.00 a.m. on 3 November 2016.
Use of Proceeds
The net proceeds raised of approximately S$6.15 million will be used for the following purposes:- S$2.80 million (45%) for the expansion of the Group's business operations locally and regionally;- S$1.20 million (20%) for the expansion of the Group's surgical facilities; and- S$2.15 million (35%) for general working capital purposes
Issued on behalf of HC Surgical Specialists Limited by:
Source: HC Surgical Specialists Limited
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