IHH IPO

Can't wait for IHH healthcare to be listed. I have always been attracted to healthcare stock. One very simple reason is because healthcare is a need, not wants. And I put my bet in them being a leading premium healthcare provider in the region.

below are the extract from http://www.valuebuddies.com/thread-2159-post-26607.html#pid26607 


S'pore retail investors offered 52m IHH sharesIPO to run from July 4-11; Temasek, GIC among 22 cornerstone investors

By JONATHAN KWOK
SINGAPORE retail investors will be able to ballot for 52 million shares in the widely anticipated initial public offering (IPO) of IHH Healthcare.

The company, Asia's biggest hospital operator, lodged the prospectus for its large-scale dual listing in Singapore and Malaysia yesterday.

The 552-page document - excluding appendices - did not reveal the price of the shares but stated that 52 million of the 2.23billion share offering, or about 2.3 per cent, will be for the Singapore public.

About 36 million shares are slated to be placed out to Singapore institutional investors. Including shares for directors, employees and business associates based here, the entire Singapore offering will be 140.6 million shares.

The Malaysia offering will be 208.5 million shares, including 161.1 million shares for the Malaysian public.

Some 498 million shares will be for placement to institutions, such as global investors, and 1.39 billion shares - about 62 per cent of the entire offering - will be for the 22 cornerstone investors which have already signed up for the IPO.

The prospectus also showed that the Government of Singapore Investment Corp is among the cornerstone investors, confirming earlier reports that the sovereign wealth fund had signed up.

Fullerton Fund Management, a wholly owned subsidiary of Temasek Holdings, has also signed up. Global investment manager BlackRock and subsidiaries of the AIA Group will be investing, as will Como Holdings, which is owned by hotelier Ong Beng Seng, and Malaysia's Employees Provident Fund.

Another one of the high-powered investors is Kencana Capital, an investment holding company controlled by Datuk Mokhzani Mahathir, who is the son of former Malaysian prime minister Mahathir Mohamad.

About 90 per cent of the public issue will be used to repay debt with the rest for working capital and listing expenses.

The IPO will 'enhance the stature of our company to market our services and expand our market position' and allow 'access (to) the equity capital market' for growth opportunities, said IHH in the prospectus.

Risk factors cited included the group's 'substantial leverage'.

The units making up the group earned combined profits of RM379.9 million (S$153million) last year, down from RM554.4million in 2010, but up from 2009's RM83.2million.

For the first quarter of this year, profits were RM123.8million, from RM101.9million in the same period last year.

The document said that the public offering will run from July4 to 11, with the price of shares set to be determined on July 12 after a placement exercise.

Trading is slated to start on July 25.

Among its operations, IHH Healthcare runs Singapore's Mount Elizabeth, Gleneagles and Parkway East hospitals.

These assets, among others, had been operated by the previously listed Parkway Holdings, which was taken private for $3.5 billion by Malaysian state investor Khazanah Nasional in 2010.

Parkway was restructured and packaged with many other operations - such as medical facilities and a health-care university in Malaysia and health-care operations in Turkey for this listing.

Some reports have suggested that IHH's shares will be sold at RM2.85 each to raise more than RM6.36 billion, though some earlier reports have estimated a more conservative figure of about RM4.7 billion.

While experts have been scrambling to estimate the windfall for Khazanah, the listing will boost Singapore's stock market too.

IHH will be the largest listing so far this year in Singapore, with the biggest so far being the $221.7 million April offering by Bumitama Agri.