Caring share offering priced at RM1.25 apiece

by **Cals** Sun 20 Oct 2013, 19:18

Published: Saturday October 19, 2013 MYT 12:00:00 AM
Updated: Saturday October 19, 2013 MYT 7:22:21 AM
Caring share offering priced at RM1.25 apiece
PETALING JAYA: Caring Pharmacy Group Bhd, which operates a chain of community pharmacies, is offering for sale 35 million new shares at RM1.25 each for a listing on the Main Market of Bursa Malaysia.
The sale of shares, representing 16.08% of the enlarged share capital of the company, will raise RM43.75mil.
Based on the offer price and the share capital, the company would have a market capitalisation of RM272.13mil upon listing.
The issue price represents a 172% premium to the pro forma consolidated net asset of 46 sen per share and price-to-book ratio of approximately 2.72 times.
The company said in its prospectus that 10.88 million new shares would be offered to the public, 5.71 million to eligible directors and employees, while 4.2 million shares are for approved bumiputera investors. The balance 14.198 million shares could be placed out.
The company intends to use RM18mil of the proceeds from the initial public offering (IPO) for new pharmacy outlets and a further RM11.75mil is for working capital.
The company’s 85 outlets under the Caring brand are located in Selangor, Kuala Lumpur, Johor, Malacca, Perak and Penang.
In a press release, Caring managing director Chong Yeow Siang said the listing was aimed at accelerating overall growth and fortifying the company’s position in the market.
In a separate filing with the stock exchange, the company said the tentative listing date was Nov 13.