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Monday, November 4, 2013

Caring IPO oversubscribed by 33.66 times


KUALA LUMPUR: Community pharmacy operator Caring Pharmacy Group Bhd, enroute to a listing on the Main Market of Bursa Malaysia on Nov 13, saw its offer of 10.87 million shares at the initial public offering (IPO) price of RM1.25 per share being oversubscribed by 33.66 times.
A total of 20,137 applications with a total value of RM471.64mil was received from the public. This is equivalent to approximately 1.73 times of the total market capitalisation of CARiNG based on the valued IPO price.       
“The overwhelming response reflects the level of confidence the market has towards the healthy fundamentals and potential growth prospects of CARiNG,” said Chong Yeow Siang, CARiNG managing director, in a statement.
In addition, the joint placement agents have also confirmed that the 14.20 million shares made available for private placement to selected investors, received strong demand from domestic institutional funds and are multiple times oversubscribed.
Caring’s IPO involves the public issuance of 35 million new shares, thus raising the total listing proceeds to RM43.75mil.
Amongst others, 41% of the proceeds will be utilised for the opening of new pharmacy outlets and another 27%, for working capital.
Notices of allotment for the IPO shares will be mailed to successful applicants on or before Nov 11.
Kenanga Investment Bank Bhd is the principal adviser, managing underwriter, joint underwriter (together with MIDF Amanah Investment Bank Bhd) and joint placement agent (together with Inter-Pacific Securities Sdn Bhd) for the IPO.
Caring undertakes retail sales of pharmaceutical products, including scheduled drugs, over-the-counter drugs and health supplements, and also non-pharmaceutical products like personal care products, medical and healthcare devices, health food, confectionery, beverages, and household products. – Bernama

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