healthyway and IPO IHC

BT和SGX转载：HMC will dispose of its entire stake in IHC within a year in a manner that realises its potential value.
- HMC executive chairman Fan Kow Hin

INTERNATIONAL Healthway Corporation (IHC) will be the largest counter on the Catalist board with a market capitalisation of $770 million after it lists next Monday.

IHC, which provides healthcare services by developing and operating 15 inpatient healthcare facilities in Japan, China and Malaysia, will raise net proceeds of $22.7 million from the placement of about 58.52 million new shares at 48 cents apiece. This is part of an initial public offering of 104.35 million shares that includes 45.83 million vendor shares.

IHC was formerly known as Healthway Medical Development (Private).

Its listing enables it to expand its portfolio of medical services and facilities at a time when Asian private healthcare spending is expected to surge, said Jong Hee Sen, IHC executive chairman, a former vice-president of GIC Real Estate.

Asian economies will double their healthcare expenditure by 2018, according to consultancy Frost & Sullivan. And countries such as China want to trim the burden on public healthcare by encouraging 20 per cent increases in inpatient and outpatient visits at private hospitals.

IHC will use $8 million of the IPO net proceeds for four uncompleted but confirmed projects. It will acquire two nursing homes in Fukuoka, Japan that have been placed under receivership; redevelop buildings in Gaoqiao, Shanghai into mixed-use medical facilities; and carry out an en bloc purchase of a mixed-used facility from its master developer in Puteri Harbour, Iskandar, Johor.

In addition, IHC intends to use another $10 million to redevelop existing projects in China and Malaysia. That includes turning an existing 150-bed Wuxi Hospital into an 800-bedder with an adjacent retail complex, and converting land in Dujiangyan, Chendu into a women-and-children specialist hospital with a wellness-themed lifestyle centre.

At the moment, IHC derives stable and recurring revenue from its portfolio of hospitals and nursing homes. In FY 2011 ended Dec 31, full-year turnover was $35.3 million, which climbed 7 per cent to $37.8 million in FY 2012.

Gross profit remained relatively unchanged at $23.8 million in FY2011 and FY2012. Other operating income from development value and revaluation gains clocked a steep rise. In FY 2011, other operating income stood at $9.1 million but jumped to $53.2 million in FY 2012 due to the valuation of its 12 Japanese nursing homes and land acquired for its Chengdu project and an upcoming mixed-use medical building in Kuala Lumpur.

Down the road, IHC may explore a Reit structure to monetise its assets to support the capital needs of future developments around the region, said Dr Jong.

Shareholders of Catalist-listed Healthway Medical Corporation (HMC) will also be able to tether themselves onto IHC's plans, at least in the short run.

Not only will HMC retain a 10.62 per cent interest in IHC post-listing, but HMC shareholders received shares amounting to 3.38 per cent of HMC shares through a dividend in specie distribution.

HMC executive chairman Fan Kow Hin said HMC would dispose of its entire stake in IHC within a year "in a manner that realises its potential value".

http://www.sgx.com/wps/wcm/connect/sgx_en/home/catalodge/20130531+International+Healthway+Corporation+Limited