KUALA LUMPUR: Big Caring Group Bhd (BCG) expects to raise gross proceeds of about RM637.8mil from its initial public offering (IPO) as it seeks to repay debt and expand its distribution.
As the country's leading retail pharmacy, BCG is scheduled to list on the Main Market of Bursa Malaysia on Nov 19, 2026.
Based on the enlarged 7.4 billion issued ordinary shares and maximum IPO price of RM1.08 per share, the expected market capitalisation of BCG upon listing is approximately RM8bil.
The IPO encompasses an offering of up to 1.9 billion ordinary shares comprising a public issue of 590.5 million new ordinary shares and an offer for sale of 1.3 billion existing ordinary shares, representing 8% and 17.5% of its enlarged issued ordinary shares respectively.
Of the proceeds raised, a lion's share of 89.5% of the funds will be used to repay bank borrowings.
There will be an allocation of 4.7% towards establishing a new distribution centre as the group's existing Bukit Raja distribution centre was operating at a utilisation rate of 80.2% as at Sept 30, 2026.
The remaining 5.8% of funds will be utilised for listing fees and expenses.
BCG targets a dividend payout ratio of up to 50% of its net profit attributable to the owners (PATAMI), after taking into account, among others, level of cash, gearing, return on equity, projected level of required capital expenditure, restrictive covenants and working capital requirements.
The IPO has secured support from 19 cornerstone investors who have agreed to subscribe for 665.5 million shares, collectively, or 96.2% of the institutional offering (excluding the Bumiputera offering under the Ministry of Investment, Trade and Industry).
BCG was established as single outlet in 2006, and has since grown to more than 600 outlets nationwide.
"As we embark on our next chapter, we will continue to strengthen our distribution capabilities, improve operational efficiency and optimise our balance sheet and provide a solid foundation for our next phase of growth," said BCG Group managing director cum group CEO Lee Meng Chuan in a statement
Maybank Investment Bank Bhd and RHB Investment Bank Bhd are the joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the IPO.
AmInvestment Bank Bhd is also a joint principal adviser, joint global coordinator, joint bookrunner and joint underwriter, while UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch are joint global coordinators and joint bookrunners for the IPO.
