Of the total amount of shares offered, 9.2 million are public offer shares, while the remaining 153.4 million are placement shares. SeaTown is owned by Seviora, Temasek’s asset management group.
In its statement also released on July 1, the company says it has secured cornerstone commitments from 10 investors totalling some $118 million. They are: Amova Asset Management Asia, Aregence Capital Management, Granite Asia IX VCC, Hood River Capital Management LLC, International Finance Corporation, Lion Global Investors, Manulife Investment Management (Singapore), Orbit Master Holdings, RBC Global Asset Management (Asia) and UBS.
Of these, Aregence Capital Management, Granite Asia, Hood River, Orbit Master Holdings and RBC Global Asset Management (Asia) are first-time cornerstone investors for an SGX-listed company.
The book-building process has been well-received by investors, according to sources familiar with the matter. At a final price of 76 cents, the international placement was oversubscribed multiple times. Together with the cornerstone investors, almost 80% of the shares were allocated to long-only funds. There was also strong participation from the Singapore Equity Market Development Programme (EQDP) fund managers, as well as insurer-backed funds, they add. Ahead of its IPO registration, book-building was conducted at indicative price levels of up to 92 cents.
Foundation Healthcare, established in 2023, has a platform built on three key verticals: its multi-speciality healthcare platform, medical centres and its proprietary technology platform that helps patients, payors, healthcare providers, medical facilities and referral partners gather information in one place.
As at March 31, the company has 108 medical specialists across 16 specialities and 74 specialist clinics within its healthcare platform, as well as four medical centres.
In FY2023 ended Dec 31 2023, the company incurred a loss attributable to equity owners of $7.66 million. By the same measure, it turned profitable the following year, with earnings of $10.12 million, and in the most recent FY2025, earnings further improved to $14 million.
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On a pro forma adjusted basis for FY2025, which takes into account a share swap, Foundation Healthcare recorded revenue of $265.9 million and profit after tax of $51.4 million. By another measurement, profit and total comprehensive income were $41.2 million in FY2025, up from $33.2 million in FY2024 and $7.3 million in FY2023.
Revenue in the same three years increased from $112.4 million to $198.9 million and $231.2 million in FY2025.
The share swap refers to how Foundation, which has been acquiring doctors and their clinics via a mix of cash and shares, will acquire the remaining 40% of the shares of the 35 companies that operate established clinical practices and Foundation Ambulatory Centre (Orchard), in exchange for new shares in the listed parent company.
Upon completion, each of these becomes a wholly owned subsidiary, which should lift reported profit, since there will be no more minority interest carving out 40% of each clinic’s earnings.
To Liaw Yit Ming, CEO and executive director, the listing is timely, given how healthcare systems are facing increasing pressure from rising costs, growing demand and more complex patient needs.
“We believe patients increasingly value healthcare that is more coordinated, accessible and affordable. Foundation Healthcare was established to build an integrated platform of specialists, medical centres and technology that supports these evolving needs while delivering long-term value for patients, healthcare partners and shareholders,” he says.
Liaw adds that the company is “well-positioned” to benefit from long-term healthcare trends such as a growing demand for “specialist-led care, increasing demand for affordable private healthcare, greater emphasis on appropriate and value-based care, the shift towards outpatient healthcare delivery and increasing digitalisation across the healthcare ecosystem”.
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“Our proposed listing will provide additional resources to pursue strategic acquisitions, expand our healthcare infrastructure and technology capabilities, and support our next phase of growth,” he continues.
The public offer opened on July 1 and will close at 12 pm on July 6. Shares in the company are expected to debut at 9 am on July 8.
Oversea-Chinese Banking Corporation (OCBC) and UBS AG, Singapore branch, are the joint issue managers for the offering.
Jefferies Singapore, OCBC and UBS AG (Singapore) are the joint global coordinators, while Jefferies, OCBC, UBS, DBS and United Overseas Bank (UOB) are the joint bookrunners and underwriters for the offering.
