Saturday March 16, 2013
Caring Pharmacy to issue 35 million shares for IPO
KUALA LUMPUR: Caring Pharmacy Group Bhd is issuing 35 million shares for its initial public offering (IPO) on the Main Market of Bursa Malaysia.
According to its draft prospectus on the Securities Commission's website, the issuance represented 16.08% of its enlarged issued and paid-up share capital of 217.71 million shares.
Of the amount, 10.88 million shares, or 5% of its enlarged issued and paid-up share capital, would be allocated for the public, of which at least 50% was to be set aside strictly for bumiputra individuals, companies, societies, co-operatives and institutions. It said that some 14.19 million shares or 6.52% was reserved by way of private placement to selected investors.
The company did not state the IPO price in its prospectus exposure or the tentative listing date of its IPO.
The operator of a chain of community pharmacies under the brand of CARiNG said about 41.15% of the gross proceeds of its IPO would be utilised for the expansion of new pharmacy outlets, including the purchase of property and equipment as well as inventories. It also intends to set up 25 to 30 new community pharmacies in Peninsular Malaysia within a two-year period.
Caring said 13.71% of the gross proceeds would be utilised for the reduction of bank borrowings to reduce interest cost and optimise its financial position.
Kenanga Investment Bank Bhd is the adviser, managing underwriter, underwriter and placement agent of the proposed listing.