Clearbridge Health (CBH) - Maybank Kim Eng 2017-12-13: IPO Fact Sheet

CLEARBRIDGE HEALTH LIMITED 1H3.SI IPO

Clearbridge Health (CBH) - IPO Fact Sheet

Clearbridge Health (CBH) is a healthcare company which focuses on the delivery of precision medicine in Asia.
Its vision is to empower healthcare professionals to make more reliable and accurate diagnoses, provide insights to disease management, and tailor personalised prevention and timely treatment programmes for patients.
Technology agnostic approach allows Clearbridge Health to adopt the most appropriate technology in each segment of its business and the products or services it offers.

Businesses include:
1. provision of laboratory testing services;
2. ownership and operation of medical clinics/centres; and
3. strategic equity participation in precision medical technology.
Clearbridge Health (CBH)’s laboratory testing services include clinical diagnostics and lifestyle & wellness management testing services. Its in- house laboratory, Sam Lab offer a US FDA approved clinical test, to aid in the prognosis of breast, prostate and colorectal cancer patients. It has also established collaborations with third parties to enhance its service offerings.
Clearbridge Health (CBH) currently own and operate two medical clinics/centres in Singapore and Hong Kong. They also provide additional channels for marketing and distribution of CBH’s lab services.
Clearbridge Health (CBH) has made strategic equity participations in Clearbridge Biomedics and Singapore Institute of Advanced Medicine Holdings, as they are involved in precision medicine technologies that complement CBH’s business.

Experienced management team, led by the CEO, Mr. Jeremy Yee, has experience in other medical related business throughout Asia including the CEO of SGX-listed Cordlife Group Limited and the COO of ASX-listed Cordlife Limited.
Potential expansion organically or through investments, M&As, JVs and strategic collaboration. Markets under consideration include Philippines, Indonesia, Myanmar, India, Malaysia and China. CBH has entered into a term sheet for the potential acquisitions of a medical centre in Philippines.
Early entrant in Asia to market metabolomics profiling, precision oncology testing and genetic based profiling screening tests. CBH intends to leverage on this to raise brand awareness and gain market share in Asia.
Holistic and patient-centric approach to healthcare focus on comprehensive range of healthcare services, from primary preventive services to oncology diagnostic services. It also enables physician to attend to overall needs of patients rather than on specific illness, for more targeted solutions.

No certainty that CBH can achieve profitability, it incurred a net loss of SGD2.1m for FY16 and SGD2.4m for 1H17, respectively. Also, after the IPO, CBH expects operating expenses to increase in the near term.
CBH may require additional funding, to implement its long- term business strategies. It may not be able to raise finance in a favourable term. Also, shareholders might be diluted if CBH issues new Shares or other securities.
CBH operates in a highly regulated industry and its business is subject to extensive regulations, licensing and accreditation requirements. Compliance and violation might lead to additional costs and resources.
Skilled and qualified staffs are required to operate and manage the laboratory and medical clinics/centres. CBH’s ability to attract, retain and motivate staffs is crucial.

Issued shares: 481.0m
Market cap: SGD134.7m
Major shareholders: Halcyon Investment Capital (24.0%); Johnson Chen (15.7%); Maxim Vorobyev (8.3%); Johnny Chen (6.4%)
Free float: 45.7%

Issue size: 88m new shares by way of placement
IPO price: SGD0.28
Lock-up period (for major shareholders)
- 100% share moratorium for 6 months post IPO
- 50% for the next 6 months
Use of IPO proceeds: SGD24.6m earmarked for the following purposes:
- SGD11.0m for expansion of medical clinics/centres
- SGD3.0m for expansion of laboratory testing services
- SGD7.5m for working capital and general corporate purposes
- SGD3.2m for listing expenses
Timetable
- Placement date: 11 Dec 2017
- Listing Date: 18 Dec 2017
Sponsor manager: UOB
Issue manager: UOB
Placement agent: UOB

John Cheong Maybank Kim Eng | http://www.maybank-ke.com.sg/ 2017-12-13

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