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TalkMed Group - IPO Factsheet

Shared By StockFanatic on Tuesday, January 21, 2014 | 21.1.14

BACKGROUND
TalkMed provides medical oncology services. Through a contractual agreement between SCC (wholly owned by TalkMed) and PHS, the group offers comprehensive cancer treatment with a highly skilled, multi-disciplinary team comprising consultant medical specialists, nurses and other para-medical professionals under the PCC brand.

BUSINESS
With more than 15 years in medical oncology practice, the group provides tertiary healthcare services in medical oncology and palliative care to oncology patients of seven clinics in Gleneagles Hospital Singapore, Mount Elizabeth Hospital Singapore, Mount Elizabeth Medical Centre and Mount Elizabeth Novena Specialist Centre Singapore. The clinical functions include minor outpatient surgical procedures, prescribing medicines and investigations, such as laboratory tests or diagnostic procedures.

 IPO STATISTICS 
Lead Manager:
Hong Leong Finance
Placement Agent:
UOB KayHian
 Prospectus: 
 Offer Size: 
105.143m new shares
 Placement Tranche: 
105.143m new shares
 Price: 
S$0.20
 NTA per share (post IPO): 
S$0.0457
 Historical PE: 
3.5x (FY12)
Market Cap (post-IPO):
S$131.4m
 Indicative IPO Timetable :
 Open: 
Friday, 17 January 2014
 Closing: 
Monday, 27 January 2014, 12:00  noon
 Trading: 
Thursday, 30 January 2014, 9:00 am (on “ready” basis)

TalkMed derives its revenue from:
- consultancy fees - amount payable by PCC to SCC for the provision of medical oncology services and other services to PCC, and representing a certain percentage of the total gross revenue of PCC for that financial year.

- management fees - aggregate of: 
a) billings for salaries, wages and employee benefits incurred by SCC, 

b) total lease management fees payable by PCC to SCC for lease management services provided by SCC to PCC with respect to the properties for that financial year.

- Profit sharing - percentage of profit before tax of PCC based on a tiered profit-sharing model set out in the consultancy restatement agreement.

BUSINESS STRATEGY AND FUTURE PLANS
• Expanding its talent pool.

• Expanding its range of healthcare services.

• Overseas expansion.

• Improving the quality of its medical services.

COMPETITIVE STRENGTHS
• Group of doctors with established market reputation.

• Provides a continuum of healthcare services to oncology patients.

• Strategic alliance with PHS enables the utilisation of PHS’s infrastructure and network to expand its existing services and reach greater heights in patient care and support.

• Experienced and proven management team.

KEY RISKS
• The group’s business is dependent on key executive, Dr Ang Peng Tiam, who spearheads the medical oncology services business, and contributes to 69.2% of the group’s revenue for the six months ended 30 Jun 13.

• The group is highly dependent on its doctors, nurses and other healthcare professionals, as well as other key personnel.

• There may be a material disruption to business if the consultancy restatement agreement between SCC and PCC is terminated.

• Any rise in rental or failure to renew existing leases for its clinics may affect operations.

DIVIDEND POLICY
The group recommends an annual dividend of up to 75% of its net profit to shareholders as dividends. (Read Report)

Source : UOB KayHian Research


Posted on Tuesday, January 21, 2014 | 21.1.14
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