Caring Pharmacy Group Berhad IPO

Caring PharmacyCaring Pharmacy Group Bhd, the operator of a chain of community pharmacies is scheduled to be listed in Main Market of Bursa Malaysia on 13th November 2013.

The Initial Public Offering (IPO) consists of public issues of 35 million new ordinary shares at an IPO price of RM1.25 per share and RM1.00 par value.

Out of this, 10.9 million shares are allocated for application by Malaysian public and 5.7 million shares reserved for the eligible directors, employees and shareholders of subsidiaries of the group. The remaining shares are for private placement.

The IPO exercise is expected to raise RM43.75 million and the proceeds will be used for expansion (18 million), reduce borrowing (6 million), renovation of office & warehouse (4 million), working capital (11.75 million) and payment of listing expenses (RM4 million).

As of now, Caring Group have a total of 85 community pharmacies. Of these, 26 are wholly owned and 59 partially owned community pharmacies which located in Selangor, Kuala Lumpur, Johor, Melaka, Perak and Penang.

The company intends to set up 25 to 30 new community pharmacies in Peninsular Malaysia within a two-year period.

More information about Caring Pharmacy Group can be found in their website.

Caring Pharmacy Group intends to pay not less than 30 percent of  profit after tax as dividends. Based on 2013 figures, this translate to dividend yield of 2.27 percent or 2.8 sen per share

The table below is the financial summary for Caring Pharmacy Group Bhd.

FYE 2010 FYE 2011 FYE 2012 FYE 2013
Revenue (RM’000) 170,566 206,501 248,284 301,417
Profit after Tax (RM’000)# 13,552 16,458 18,271 20,552
Earnings per Share (sen)* 6.22 7.56 8.39 9.44
Price Earnings Ratio (x)* 20.08 16.53 14.89 13.24

# PAT attibutable to the equity holders of Caring
* Based on number of shares post IPO
Kenanga Investment Banks is the principal adviser, managing underwriter and joint placement agent of the IPO.

For those who are interested in Caring Pharmacy Group IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 30th October 2013 at 5pm. Tentative balloting date is on 1st November 2013 while the allotment date is on 11th November 2013.

Caring Pharmacy Group stock name in Bursa Malaysia is “CARING”.

View Caring Pharmacy Group prospectus in Bursa Malaysia webpage.

What do you think about Caring Pharmacy Group IPO? Are you going to subscribe?

Previous post: Next post:

Leave a Comment

  • ec 21st October, 2013, 5:21 pm

    what is the target price for this? good to subcribe?

    • 23rd October, 2013, 10:12 am

      I will post the target price when the information become available.

      Base on financial record it seem to be OK but dividend is on the lower side.

  • PP 24th October, 2013, 6:27 pm

    Will you apply for this IPO ?

    • 29th October, 2013, 8:39 am

      I’m not going to subscribe this time because I have to use my fund for other purpose.