KUALA LUMPUR: LYC Healthcare Bhd
(LYC) has announced plans to list its subsidiary, LYC Healthcare (Cayman) Ltd (LYC Cayman), on the Nasdaq Capital Market.
In a Bursa Malaysia filing today, the healthcare company said that LYC Cayman plans to undertake an initial public offering (IPO) of new ordinary shares on the Nasdaq.
"The offering size is expected to range between US$5 million and US$15 million, subject to the full exercise of the over-allotment option by underwriters.
"The IPO price will be at least US$4.00 per share, with shares offered to third-party investors,” it said.
Additionally, It said that following the completion of an internal reorganisation, LYC Cayman would become the ultimate holding company for LYC’s operating subsidiaries, HC Orthopaedic Surgery Pte Ltd (HCOS) and T&T Medical Group Pte Ltd (T&T).
Post-listing, LYC's stake in its operating subsidiaries, HCOS and T&T will dilute from 64.50 per cent but remain above 50 per cent.
"The proceeds from the IPO will be allocated as follows: approximately 50 per cent for potential mergers and acquisitions, 20 per cent for business expansion, and 30 per cent for daily operations and working capital,” it said.
The company said that the rationale for the listing includes enabling the efficient allocation of resources to drive business growth in medical and surgical advisory services.
It would also unlock the value of LYC’s investment in the operating subsidiaries through the share offering, ultimately benefiting shareholders.
"Barring any unforeseen circumstances, the proposed listing is expected to be completed by the first half of 2025,” it said.
UOB Kay Hian Securities (M) Sdn Bhd has been appointed as the principal adviser for the exercise. - Bernama
