Who Is Big Caring Group, and Why Does Its IPO Matter?
Big Caring Group is Malaysia’s largest chain pharmacy group. Founded in 2006, it runs more than 600 outlets and is the only vertically integrated chain pharmacy on Bursa Malaysia.
Managing director and CEO Lee Ming Chuan says the group is an integrated healthcare company, not just a pharmacy chain. It also has drug contract manufacturing capability and in-house brands.
The group hopes to become the largest listed pharmacy retailer in ASEAN.
How Big Is the Big Caring Group IPO?
The IPO offers up to 1.9 billion shares, made up of 590.5 million new shares and 1.3 billion existing shares sold by shareholders. The group expects to list on the Bursa Malaysia Main Market on 19 November, giving it a market value of about RM8 billion. That makes it the second-largest listing this year by market size.
The prospectus allocates the shares as follows:
- Public (new shares): 267.638 million, including 73.819 million each for Malaysian public and bumiputera investors, and 120 million for eligible directors, employees and contributors.
- Institutional (new shares): 322.909 million, including 212.909 million for bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) and 110 million for other institutions and selected investors.
- Offer for sale (existing shares): 1,291.821 million, including 709.821 million for MITI-approved bumiputera investors and 582 million for other institutions and selected investors.
19 cornerstone investors have agreed to subscribe for 665.5 million shares. That equals 96.2% of the institutional portion, excluding approved bumiputera investors. Maybank Group global banking chief Dato’ Chang Yong Chuan said this reflects investor confidence in the group’s fundamentals.
The report does not state the offer price or subscription dates. Confirm both in the prospectus before you apply.
Where Does the RM570.7 Million Go?
The IPO splits its proceeds three ways. 89.5%, or RM570.7 million, repays bank loans. 4.7%, or RM30 million, funds a new distribution centre within 36 months. 5.8%, or RM37.1 million, covers listing expenses.
The chief financial officer says repayment could save up to RM36.3 million in interest. The debt ratio would fall from 2.8 times to below 1 times.
Earlier acquisitions of CARiNG (康宁药剂), Medispec and Your Physio were funded through bank loans, according to the prospectus.
Why Is the Bukit Raja Distribution Centre at 80% Capacity?
Lee says the existing Bukit Raja distribution centre has reached 80% operating capacity. The new centre is meant to support the expanding branch network and improve delivery efficiency.
No site has been locked in yet. Executive director Lam Hin Ying says it is expected to sit near the existing distribution centre.
What Expansion Is Planned After the Big Caring Group IPO?
Over the three to five years after listing, the group plans to open about 40 to 50 new branches a year. It will also keep looking for acquisitions carefully.
The group is pursuing a Singapore pharmaceutical distributor to expand its Singapore business. Lee says Your Physio fits the healthcare ecosystem: pharmacists can refer patients who need physiotherapy, and physiotherapy patients who need medicine can be referred to the group’s pharmacies.
What Is Missing From the Big Caring Group IPO Numbers?
The report does not include revenue, net profit, earnings per share or peer valuation. The IPO price therefore cannot yet be compared with listed pharmacy peers.
Debt is the clearest pressure point in the figures provided. The listing proceeds are earmarked to reduce it, so the debt ratio and interest savings are the numbers to track.
How to Apply for the Big Caring Group IPO
Apply through the M+ Global app using Invitation Code UBZQ. For assistance, WhatsApp +60169059789.
An online application requires a CDS account in your own name. Each broker issues its own CDS account, and you may submit only one application per IPO. Multiple applications are an offence under the Capital Markets and Services Act 2007. If the IPO is oversubscribed, retail portions are balloted.
New to IPOs? Read IPO Investing with M+ Global and Trading Account Types in Malaysia.
This article is for information only and is not financial advice. Do your own research and read the prospectus before making any decision on the Big Caring Group IPO.
Key Takeaways
- Big Caring Group targets a 19 November listing on the Bursa Malaysia Main Market, at about RM8 billion market value.
- 89.5% of proceeds, or RM570.7 million, will repay bank loans, with up to RM36.3 million in interest savings.
- The debt ratio is expected to fall from 2.8 times to below 1 times after repayment.
- Lee Ming Chuan plans 40 to 50 new branches a year over three to five years after listing.
- Offer price, subscription dates and peer valuation are not in the source report and must be checked in the prospectus.
Frequently Asked Questions
When will Big Caring Group list on Bursa Malaysia?
Big Caring Group expects to list on the Bursa Malaysia Main Market on 19 November. Its market value after listing is about RM8 billion.
How much debt will Big Caring Group repay from its IPO?
Big Caring Group will use RM570.7 million, or 89.5% of IPO proceeds, to repay bank loans. The chief financial officer says this could save up to RM36.3 million in interest.
How many Big Caring Group IPO shares can Malaysian public investors apply for?
Malaysian public investors and bumiputera investors can each apply for 73.819 million shares, according to the prospectus. Eligible directors, employees and contributors have a separate allocation of 120 million shares.
Is the Big Caring Group IPO a good investment?
This article does not give investment advice. The report lacks revenue, net profit, earnings per share and peer valuation, so check the prospectus for these figures before deciding.
Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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