3/12/2018 – Medinex Ltd, a provider of professional support services to medical clinics is looking to raise S$7.5 million (about US$5.48 million) through an initial public offering (IPO) on the Singapore’s Catalist Board (SGX).
The IPO comprises a placement tranche of 30 million shares, which include 26 million new shares and four million vendor shares that will be sold at a price of S$0.25 per share.
Medinex expects to reach a market capitalization of S$32.8 million (about US$23.9 million), a figure which is 25 times its pro forma net profit of S$1.3 million in 2017.
The company also made a pro forma net profit of S$1.3 million in the first half of 2018, on the revenue of S$4.9 million. This more than doubles the S$583,000 net profit it made in the first half of 2017.
If this listing is successful, Medinex will receive S$5.32 million in total net proceeds, after the deduction of listing-related expenses of S$1.18 million.
According to Medinex, S$1.3 million of the proceeds will be earmarked as working capital while $4 million will be used in expanding the company’s business operations. This includes the acquisition of human resources and consulting services company Ark Leadership that is owned by Valerie Low, a sibling of Jessie Low, the CEO of Medinex Ltd.
Human resources and staff retention is one of the main struggles faced by doctors, said Medinex’s Chief Operating Officer Bobby Lee.
“One of the biggest problems for doctors is that they don’t know how much it costs to set up a clinic. They could bid for the rental and maybe not sustain it. The business consulting is very important for them to understand what they are going into, how will the whole clinic pan out over the next one to two years.”
“Saturation is only in certain parts of Singapore, especially the mature estates. But at the same time, there are a lot of growth areas, for example Bukit Batok, Woodleigh, Buangkok, even Tengah, Sengkang. These are some of the areas where we can help the GPs set up their clinics at the right rental,” said Lee.
Founded in 2008, Medinex offers medical support services such as helping clients oversee the setting up of clinics and facilitates applications for relevant clinic licenses.
Since 2012, Medinex has branched out to provide business support services to corporate clients, focusing on small and medium enterprises.
It also offers turnkey solutions including accounting and tax agent services, human resource management services and corporate secretarial services to more than 120 general practitioners and specialists.
In 2017 and 2018, the company acquired a pharmaceutical services company Nex and also teamed up with two major pharmaceutical companies, Zuelig Pharma Pte. Ltd, and DKSH Singapore Pte Ltd for sourcing and distribution of pharma supplies.