Wednesday, May 27, 2015

IPO - Singapore O&G Ltd @ 25 Cents

Singapore O&G Ltd , an healthcare firm focusing on Obstetrics and Gynaecology services/treatments is the latest company went into the IPO (Initial Public Offering) foray. It will be listed on the Catalist Board of SGX at 25 cents per share. 

A total of 43.6 millions of shares are being offered but only 2.2 millions are being offered to the public while the rest will be through private placement. The approximate net proceeds of S$9.2 million will be used for investments in healthcare professionals and synergistic businesses, expanding its business operations as well as for working capital purposes.

Some of the key highlights of the investment merits:
1. Well established specialist medical practitioners in women's healthcare
2. Dedicated management team with relevant industry experience
3. Stable business with strong cashflow
4. Conveniently located clinics in the central and east regions of Singapore
5. Attractive Dividend Yield (basing on the IPO price of $0.25 and FY2014 earnings as well as the 90% payout. the anticipated Dividend Yield is 7.3%). 

For more details of Singapore O&G Ltd's IPO Prospectus, click here

The IPO closes on 2nd June 2015 (Tue), 12 PM and will start trading on 4th June 2015. Personally, I quite like the healthcare industry, especially our vision to be the medical tourism hub for the region. Having said that, with the lacklustre performance of the past few recent IPOs, I am kind of undecided as to whether to try my luck on this one. 

What about you? Is this the IPO that appeal to you?  



  1. Am wondering what's the motivation for a group of specialists like these to want to go the IPO route? Their business seems profitable as is. Why share their profit with shareholders? What benefits do they get that they couldn't individually or as a "private" group.

    1. Lizardo : I guess one of the reason is business expansion to other countries as stated in their prospect! So, did u subscribe?

  2. Richard,

    Not sure I fully understand still. What exactly does business expansion to other countries mean in this instance? If they setup shop overseas, they would have to employ doctors and setup clinics. Does that allow them to enjoy good ROE as overseas costs are lower, but yet they can command the same price to charge?

    And yes, notwithstanding my uncertainties, I'm taking a bet on this.

    1. I guess this is only the beginning for the greater thing for the company..maybe they will bring some of the specialist here to oversea and expand from there...

      All the best to your subscription


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