Fullerton Health files draft prospectus for listing on SGX mainboard

SINGAPORE — Fullerton Healthcare, a provider of medical services to corporate workers in Asia, has lodged its preliminary prospectus for a listing on the mainboard of the Singapore Exchange. It did not give an indicative pricing but a Bloomberg story earlier this month put the size of the deal at S$250 million.

The Singapore-based company aims to trade by the end of October, the Bloomberg report said, citing people with knowledge of the deal. The group is offering 140.33 million shares under an international offering and Singapore public offer, comprising 93 million new shares and 47.33 million vendor shares, according to the draft prospectus.

The net proceeds will be used primarily to fund potential acquisitions, proposed investments in Fullerton China and the Bideford Road Building and for general corporate and working capital purposes.

Fullerton Healthcare joins Raffles Medical Group and Healthscope in seeking a public listing to tap investor interest in Asia Pacific’s booming medical-services market.

According to Frost & Sullivan, the addressable market for enterprise healthcare management in Fullerton Healthcare’s targeted markets — Singapore, Indonesia, Australia, Hong Kong and China — is expected to grow at a compound annual growth rate of 11.4 per cent to about US$35.5 billion (S$48.3 billion) by 2020 from about US$20.7 billion last year.

The company is selling shares after expanding through acquisitions, spending S$111 million in May last year to buy radiology scan provider Radlink-Asia and buying a majority stake in Hong Kong’s HMMP chain of health-care clinics.

As of June 30, the group has a network of 198 wholly-owned medical centres and healthcare facilities, with more than 1,900 employees, 350 medical professionals. It has more than 500 employees in Singapore alone.

The number of lives covered by its enterprise healthcare solutions amounted to eight million last year, doubling from four million in 2014. The group’s adjusted profit has also increased to $17.7 million last year from S$12.2 million in 2014.