IHH listing set to inject RM5b profit into Khazanah
Khazanah Nasional Bhd, government-owned investment arm, stands to make a paper gain of RM5 billion through the initial public offering (IPO) of IHH Healthcare Bhd.
Khazanah managing director Tan Sri Azman Mokhtar said at the proposed IPO price of RM2.85, its stake will now be valued at RM11 billion compared with its initial investment of RM6 billion in 2005.
"This would make healthcare at about 10 per cent of our portfolio, which is one of the core holdings for Khazanah," Azman said here yesterday at the launch of IHH's prospectus by Prime Minister Datuk Seri Najib Razak.
Khazanah has a 62 per cent stake in IHH from its investments in India's Apollo Hospitals, Malaysia's Pantai, Singapore's Parkway and Turkey's Acibadem. Post-listing, Khazanah will hold a 47.78 per cent stake in the hospital operator.
IHH, Asia's biggest hospital owner and operator, will raise RM5.13 billion from its IPO and will use 90.9 per cent, or RM4.6 billion, of the gross proceeds to repay bank borrowings within 12 months of listing.
The remaining RM279 million (5.4 per cent) will be used for working capital and general corporate purposes within 24 months and RM188 million (3.66 per cent) will be utilised for listing expenses within the next 12 months as listing is slated on July 25.
IHH managing director Dr Lim Cheok Peng said IHH, which is one of the world's top two healthcare providers by market capitalisation, will also use part of the proceeds to raise hospital beds by another 3,300 within the next three years and expand the number of hospitals by another 17.
Formerly known as Integrated Healthcare Holdings Bhd, IHH, which will be 48 per cent-owned by Khazanah post-listing, has 4,900 beds in 30 hospitals and 60 medical centres with more than 24,000 staff in eight countries.
"Our future expansion plan includes the opening of Mount Elizabeth Novena hospital in Singapore by July 2012 and three hospitals in Malaysia which are the Gleneagles hospital in Medini Iskandar and Kota Kinabalu as well as the Pantai hospital in Manjung," Lim told reporters.
IHH executive director Dr Tan See Leng said 75 per cent of the 3,300 beds has been budgeted at RM3 billion and the remaining 25 per cent will be financed by the IPO proceeds.
IHH has a debt of RM6 billion and a cash pile of some RM1 billion. It made a net profit of RM216.4 million in financial year ended March this year.
The company's IPO is also the world's third largest this year after Felda Global Ventures Holdings Bhd's RM10.4 billion and Facebook's US$16 billion.
IHH is making a global offer of up to 2.2 billion shares at RM2.85, or S$1.18, per share. Out of the 2.2 billion shares, 1.8 billion are new shares and 434.6 million are existing shares.
Out of the 2.2 billion shares, 349.1 million shares are offered to both the Malaysian and Singaporean public, which include retail investors, IHH directors, employees and doctors.
The remaining 1.8 billion shares are offered to a record 22 international Malaysian and Singaporean cornerstone investors.
The IHH IPO is expected to give Malaysia bragging rights as the top IPO centre in Asia this year, surpassing traditional financial hub Hong Kong.
It is the first ever concurrent IPO in Malaysia and Singapore as well as the largest and the first concurrent IPO cooperation between two stock markets.
Malaysia and Singapore public offerings open on July 2 and will close on July 11. The dual listing is slated for July 25 on the Main Market of Bursa Malaysia and the main board of the Singapore Exchange Securities Trading Ltd (SGX).
The shares are fully fungible which means IHH shareholders will be able to transfer their shares from Bursa Malaysia to trade on SGX and vice-versa.
Khazanah's venture into IHH started in 2005 when it bought a minority stake in India's Apollo hospitals.
Today, Khazanah owns 11.2 per cent in Apollo Holdings, which is the largest hospital operator in India with 8,200 beds.
In Malaysia, IHH is the number two operator with a market share of 15.1 per cent under the brandname Pantai and the top one in Turkey under the brandname Acibadem.
Khazanah managing director Tan Sri Azman Mokhtar said at the proposed IPO price of RM2.85, its stake will now be valued at RM11 billion compared with its initial investment of RM6 billion in 2005.
"This would make healthcare at about 10 per cent of our portfolio, which is one of the core holdings for Khazanah," Azman said here yesterday at the launch of IHH's prospectus by Prime Minister Datuk Seri Najib Razak.
Khazanah has a 62 per cent stake in IHH from its investments in India's Apollo Hospitals, Malaysia's Pantai, Singapore's Parkway and Turkey's Acibadem. Post-listing, Khazanah will hold a 47.78 per cent stake in the hospital operator.
IHH, Asia's biggest hospital owner and operator, will raise RM5.13 billion from its IPO and will use 90.9 per cent, or RM4.6 billion, of the gross proceeds to repay bank borrowings within 12 months of listing.
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IHH managing director Dr Lim Cheok Peng said IHH, which is one of the world's top two healthcare providers by market capitalisation, will also use part of the proceeds to raise hospital beds by another 3,300 within the next three years and expand the number of hospitals by another 17.
Formerly known as Integrated Healthcare Holdings Bhd, IHH, which will be 48 per cent-owned by Khazanah post-listing, has 4,900 beds in 30 hospitals and 60 medical centres with more than 24,000 staff in eight countries.
"Our future expansion plan includes the opening of Mount Elizabeth Novena hospital in Singapore by July 2012 and three hospitals in Malaysia which are the Gleneagles hospital in Medini Iskandar and Kota Kinabalu as well as the Pantai hospital in Manjung," Lim told reporters.
IHH executive director Dr Tan See Leng said 75 per cent of the 3,300 beds has been budgeted at RM3 billion and the remaining 25 per cent will be financed by the IPO proceeds.
IHH has a debt of RM6 billion and a cash pile of some RM1 billion. It made a net profit of RM216.4 million in financial year ended March this year.
The company's IPO is also the world's third largest this year after Felda Global Ventures Holdings Bhd's RM10.4 billion and Facebook's US$16 billion.
IHH is making a global offer of up to 2.2 billion shares at RM2.85, or S$1.18, per share. Out of the 2.2 billion shares, 1.8 billion are new shares and 434.6 million are existing shares.
Out of the 2.2 billion shares, 349.1 million shares are offered to both the Malaysian and Singaporean public, which include retail investors, IHH directors, employees and doctors.
The remaining 1.8 billion shares are offered to a record 22 international Malaysian and Singaporean cornerstone investors.
The IHH IPO is expected to give Malaysia bragging rights as the top IPO centre in Asia this year, surpassing traditional financial hub Hong Kong.
It is the first ever concurrent IPO in Malaysia and Singapore as well as the largest and the first concurrent IPO cooperation between two stock markets.
Malaysia and Singapore public offerings open on July 2 and will close on July 11. The dual listing is slated for July 25 on the Main Market of Bursa Malaysia and the main board of the Singapore Exchange Securities Trading Ltd (SGX).
The shares are fully fungible which means IHH shareholders will be able to transfer their shares from Bursa Malaysia to trade on SGX and vice-versa.
Khazanah's venture into IHH started in 2005 when it bought a minority stake in India's Apollo hospitals.
Today, Khazanah owns 11.2 per cent in Apollo Holdings, which is the largest hospital operator in India with 8,200 beds.
In Malaysia, IHH is the number two operator with a market share of 15.1 per cent under the brandname Pantai and the top one in Turkey under the brandname Acibadem.
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