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SHARES of cancer-treatment provider Singapore Institute of Advanced Medicine (SAM) opened below its initial public offering (IPO) price on the company’s Catalist debut on Friday (Feb 16).
The counter opened at S$0.195, down 15.2 per cent from its listing price of S$0.23. As at 9.09 am, it was trading at S$0.19 with 299,000 shares changing hands.
Its offering comprised a public tranche of 4.9 million shares, which were reallocated after a previous offering of 4.4 million shares was nearly 1.4 times subscribed, as well as a placement of 109.1 million shares.
The overall subscription for the IPO was 1.01 times, based on SAM’s statement on Thursday.
Through the IPO, the company will raise S$26.2 million in gross proceeds, with net proceeds to be used mainly for repaying bank borrowings. Some 24.8 per cent of the net proceeds will be used for working capital, and 0.8 per cent for the acquisition of new equipment, facilities and upgrading of systems.
Dr Djeng Shih Kien, SAM’s founder and chief executive, said the IPO’s subscription rate was a “vote of confidence for the growth and impact yet to come”.
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Founded in 2011, SAM focuses on diagnosing and treating various diseases and health conditions. These include cancer, as well as neurodegenerative and cardiovascular diseases.
The company lodged its preliminary prospectus on Nov 24, with the aim of becoming a “one-stop ambulatory treatment centre” for cancer, by grouping all relevant services under one roof.
SAM is also a unit of Malaysia-listed Berjaya Group, a conglomerate that has multiple business verticals, which include consumer marketing, property, food and beverage, and gaming.
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