Malaysia's biggest pharmacy chain, Big Caring Group Bhd., is offering shares worth up to 2.3 billion ringgit ($565 million) in an initial public offering that is poised to be the country's second largest listing this year. The shares are priced at 1.08 ringgit apiece, valuing Big Caring at 8 billion ringgit upon listing, according to its prospectus published on Thursday. The offer covers a total of 2.1 billion shares, including the over-allotment option.
The Nov. 19 listing on Bursa Malaysia's main market comes as pharmacy chains expand to meet rising demand for medicines and health products in Malaysia. The country has also led Southeast Asia in IPO fundraising this year, with more than 40 listings, according to data compiled by Bloomberg. The deal would rank behind Sunway Healthcare Holdings Bhd.'s 2.86 billion-ringgit IPO in March, Malaysia's biggest in nine years. Including the over-allotment option, Sunway eventually raised around 3.28 billion ringgit.
Private equity firm Creador's investment vehicle, IPSB, will reduce its stake from 33.7% to 19.3% after the IPO, or 16.3% if the over-allotment option is fully exercised. The founders' holding company, Uptown Paradise, will also sell shares, reducing its stake from 42.9% to 34.4%. The listing will be Creador's biggest IPO in Malaysia, eclipsing home improvement chain MR DIY Group M Bhd.
Big Caring's roots lie in Big Pharmacy, whose first outlet was opened by Lee Meng Chuan and his wife, Lim Sin Yin, in 2006. The group acquired Caring Pharmacy from 7-Eleven Malaysia Holdings Bhd. in 2023 and has grown to 668 retail outlets, of which 660 are licensed pharmacies. Big Caring will use 570.7 million ringgit of its IPO proceeds to repay bank loans. For the financial year ended June 30, net profit rose 57% to 191.6 million ringgit, while revenue was up 18% to 4.02 billion ringgit.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing