Singapore-based aesthetics group eyes S$204m with Taiwan listing

SINGAPORE — Two former investment banker cousins — Terence Loh, 40 and Nelson Loh, 38 —started a business in the aesthetic healthcare industry without prior knowledge because they saw it as a “recession-proof” sector that has been around for centuries.

Fast forward six years, and the duo now own one of the largest integrated medical healthcare and aesthetic chains globally. Novena Global Lifecare has a network of 100 clinics across Singapore, China, Hong Kong, Taiwan, South Korea, Indonesia, India and Malaysia.

To further fuel its expansion, the Singapore-based business has announced plans to list on the Taiwan Stock Exchange to raise US$150 million (S$204 million).

The group’s chain of clinics carries brands such as Novu, P Clinic, Chelsea and Gangnam, offering procedures such as the removal of pigmentation, face toning and non-invasive facial treatments such as Botox and fillers, as well as whitening and slimming services.

In an interview with TODAY, executive chairman and co-founder of Novena Nelson Loh said that the cousins had always wanted to do business, and were on the lookout years ago for an industry that would not be easily replaced by the Internet and e-commerce. They saw the potential in the healthcare sector, despite having no medical knowledge.

Mr Loh also witnessed the global phenomenon of people becoming more attentive to their appearances, led by social media driving a demand for beauty needs.

“The impact of social media has also altered the way people behave. The new millennials are not afraid to ‘flash’ themselves, express themselves. This means they tend to focus a lot more on how they look and feel.

“It is a global phenomenon now, and naturally people would want to look good. That is the reason why people are spending a lot more time on appearances, presenting themselves … even for getting ahead in life.

“It is a function of the economy changing, and social media has engineered this trend.”

From day one, Mr Loh said the founders wanted to be in control of the technology of the business, so they acquired an equipment manufacturer in Korea to focus on research and development. Instead of setting up a clinic, they went straight to the source to focus on the technology, with the intention of selling it to the world.

Subsequently, they decided to enter the frontline market by concurrently setting up clinics in Singapore, South Korea and Taiwan.

“One of the reasons we chose (to list in) Taiwan is because North Asia contributes over 50 per cent of total revenue, while Singapore contributes less than a quarter of total revenue,” he said. “The listing is our first milestone, not our endpoint. It’s really to get more capital.”

Mr Loh hopes to expand the business in North Asia, with targets of 200 points of sales in China, and 500 globally by 2020.

Plans are also afoot to convert Novena Gardens into a tertiary medical centre, offering a suite of services including an anti-ageing centre and medical serviced apartments for patients. Mr Loh said more details will be revealed in due course.

“If you think about it, the beauty industry is one of the oldest industries ever. It has survived for centuries and aesthetics is just putting more science into the industry,” he said.

“People will always require this service; the key thing is how we stay ahead of the curve. I think the demand will always be there.”