IHH Healthcare Berhad IPO

IHH Healthcare Berhad

IHH Healthcare Bhd, Asia’s biggest hospital operator is scheduled to be dual listed in Main Market of Bursa Malaysia and Singapore Stock Exchange on 25th July 2012.

The Initial Public Offering (IPO) consists of 2.23 billion shares. 1.39 billion are set aside for cornerstone investors and 498.01 million for local and foreign institutional investors.

A total of 208.51 million shares are allocated to retail investors and people who have contributed to the IHH group, including company staff and directors and business associates. The remaining 140.64 million shares are offered to retail investors in Singapore.

The retail price of the offering is RM2.85 and S$1.18 per share for Malaysia & Singapore offering respectively.

The final price will be equal to the institutional price. There will be a refund to the difference if the final retail price is less than the retail price.

The IPO will raise RM5.1 in proceeds. About 90.9% of the IPO proceeds will be used for repayment of borrowings, while a further 5.4% will be utilised for working capital while the remaining 3.6% will be used for listing expenses.

IHH Healthcare had a leading market positions in its home markets of Malaysia, Singapore and Turkey with hospital in Turkish hospital group Acibadem AS, Singapore’s Parkway Holdings, India’s Apollo Hospitals Enterprise Ltd, Pantai Hospitals and International Medical University.

The group, which is controlled by Khazanah Nasional Bhd, also has healthcare operations and investments in China, India, Hong Kong, Vietnam, Brunei and Macedonia. It operates over 4,900 beds in 30 hospitals as well as clinics and ancillary healthcare business across eight countries.

In the pipeline are more than 3,300 new beds to be delivered through new hospital developments and expansion over the next five years. These include two potential hospital development projects in Turkey.

Blackrock Inc, Capital Group, Kuwait Investment Authority and Och-Ziff Capital Management Group are among cornerstone investors in IHH. Others include sovereign wealth fund Government of Singapore Investment Corp, Fullerton Fund Management, AIA Group and Hwang Investment Management.

The cornerstone investors among local funds include the Employees Provident Fund (EPF), Permodalan Nasional Bhd, Lembaga Tabung Haji, Tan Sri Chua Ma Yu’s CMY Capital Markets Sdn Bhd, Eastspring Investments Bhd and CIMB-Principal Asset Management Bhd.

More information regarding the company can be found in IHH Healthcare webpage.

Currently, IHH Healthcare does not have any fixed dividend policy.

The table below is the financial summary for IHH Healthcare Bhd.

FYE 2009 FYE 2010 FYE 2011 3 mth ended 31st Mar 2011  3 mth ended 31st Mar 2012
Revenue (RM’000)  121,081  1,214,085  3,328,849  859,927  1,276,192
Profit after Tax (RM’000)  110,277  514,621  505,560  128,710  237,115
Earnings per Share (sen)*  1.37  6.39  6.27  6.39**  11.77**
Price Earnings Ratio (x)*  208.23  44.62  45.42  44.60**  24.21**

* Based on number of shares post IPO
** Annualized

CIMB Investment Bank is the principal adviser, managing underwriter for the Malaysia public offering of the IPO.

For those who are interested in IHH Healthcare IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 11th July 2012 at 5pm. Tentative balloting date is on 13th July while the allotment date is on 23rd July 2012.

IHH Healthcare stock name in Bursa Malaysia is “IHH”.

View IHH Healthcare prospectus in Bursa Malaysia webpage.

What do you think about IHH Healthcare IPO? Are you going to subscribe?

Leave a Comment

  • Alan 3rd July, 2012, 12:59 pm

    Why i cant see the ipo application at maybank2u website? thanks

  • 1mdb.com 3rd July, 2012, 1:55 pm

    Alan, try to look again later. Sometimes, there is slightly delay.

  • jv 3rd July, 2012, 8:04 pm

    seems like a good buy

  • dour 3rd July, 2012, 11:23 pm

    “About 90.9% of the IPO proceeds will be used for repayment of borrowings,”
    wah…to many hutang ka?

    • Student11 4th July, 2012, 12:06 am

      It could also mean that they already expand their operation with capital from the borrowing. Later, fund raised from the IPO will be used to pay out the debt. If this is true, it means the company will operate without debt. Just my guess.

  • Thye 4th July, 2012, 12:33 am

    How come IHH is not in Maybank2u yet? Is Maybank not one of the e-IPO bank panel for this IPO?

  • Teo 4th July, 2012, 12:04 pm

    I can’t see IHH in Maybank2u….

  • serd82 4th July, 2012, 1:22 pm

    Is this IPO exclusive to CIMB only? seem only can apply thru cimbclicks some more fee charge also 2-tier CIMB cds & non-cimb cds..m2u only RM1 lor…last check m2u tis morning only 2 crap ipos there but no IHH yet.

  • JJ 4th July, 2012, 5:48 pm

    m2u can’t apply, it’s really crab…….maybank is useless as compare to CIMB……..last time also one IPO also did the same…………sigh……..

  • Alan 4th July, 2012, 6:56 pm

    does this mean that i need to apply at cimb? if i dun have cimb account then i cant apply?

  • 1mdb.com 4th July, 2012, 8:15 pm

    guys, now you should see it in Maybank2u.

  • ken 4th July, 2012, 9:14 pm

    It’s already up in maybank2u. go and check…

  • bryan fang 5th July, 2012, 1:29 am

    Anybody in ?? Its good purchase ?

  • zhalim 5th July, 2012, 3:22 am

    can’t apply M2U says:- Unsuccessful – Invalid share issue number
    What happen?

  • Eddy 5th July, 2012, 9:11 am

    PE ratio is quite hi, but I guess the demand for such companies with a good foundation & foreseeable stable growth will always be there, I’d apply & sell off all of it within the 1st day of listing if allocated shares.

    But for now, I’ll wait for the fair value analysis from the various research houses to be updated here, before any further action. ; )

  • 1mdb.com 5th July, 2012, 1:39 pm

    Some interesting news

    1. IHH likely will be FBM KLCI candidates
    2. IHH Healthcare Bhd, has received orders for about 60 times the shares available to the institutions

  • ReM 5th July, 2012, 2:00 pm

    Another good IPO.

    Good profit record and excellent experienced management. It would only do well in the future.

  • Goh 6th July, 2012, 12:39 pm

    Please revise your EPS figures.

    The net profit for IFF was 379.9m in 2011.

  • JL 6th July, 2012, 2:34 pm

    Any idea how a foreigner in Singapore can apply this IPO?

  • 1mdb.com 6th July, 2012, 3:47 pm

    Goh, where do you get that figure? The figure I get from their prospectus under “total comprehensive income”

    JL, sorry, I have no idea.

  • 1mdb.com 6th July, 2012, 4:16 pm

    Target Price / Fair value

    ECM Libra – RM2.94
    JF Apex Research – RM3.00
    Public Investment Bank – RM2.98

  • Goh 8th July, 2012, 3:46 pm

    The figure is from Public Investment newsletter

    Net profit : 83.2m in 2009, 554.4m in 2010, 379.9m in 2011.

    You can see the same figure in news at http://www.theedgemalaysia.com/in-the-financial-daily/216395-ihh-ipo-windfall-for-khazanah.html

  • katani17 10th July, 2012, 11:39 pm

    now the highest fair value only TA Securities RM3.33.

    maybe low fair value because the money come from IPO will use to repay loan

  • bryan fang 11th July, 2012, 12:46 pm

    anybody in ?

    • 1mdb.com 11th July, 2012, 6:30 pm

      I did. Apply just before the closing time. Did you apply?

  • keyo 11th July, 2012, 4:53 pm

    language used by analysts might sound weird.. when they say buy, it could means sell..when they say sell, it could means buy..if they say dont subscribe it could means subscribe big…clause for these…it COULD be la….not necessarily correct..

  • keyo 11th July, 2012, 5:13 pm

    TDM..KPJ..Raffles..bumrungrad already having their rally pre IHH listing. hopefully it is a gud sign for IHH

  • Lala Patakar 11th July, 2012, 6:15 pm

    Yea, I kinda bought 20000 Units. I hope it works out well.

  • 1mdb.com 11th July, 2012, 6:31 pm

    keyo, I hope it turn out to be a good IPO

    Lala Patakar, Good Luck to you.

  • bryan fang 15th July, 2012, 12:54 am

    Yeah. For this ipo, i didnt apply much compare with FGV