KUALA LUMPUR: Big Caring Group Bhd (BCG) is targeting RM637.8 million from its initial public offering (IPO) ahead of its Bursa Malaysia Main Market debut on Nov 19.
Malaysia’s largest pharmacy retailer by revenue and number of licensed pharmacies launched its IPO prospectus on Thursday (Oct. 29), with an expected market capitalisation of approximately RM8 billion upon listing.
The IPO involves up to 1.9 billion shares, comprising 590.5 million new shares and 1.3 billion existing shares offered for sale, at a maximum price of RM1.08 per share.
BCG’s Group Managing Director and Chief Executive Officer, Lee Meng Chuan said the listing marked a significant milestone in the company’s expansion.
“From a single outlet in 2006, we have grown into Malaysia’s largest pharmacy retailer, with more than 600 retail outlets nationwide, driven by organic expansion and strategic acquisitions,” he said in a statement.
He said the group would continue strengthening its distribution capabilities, improving operational efficiency and optimising its balance sheet to support future growth.
Of the RM637.8 million expected proceeds, 89.5 per cent will be used to repay bank borrowings within three months of listing.
Another 4.7 per cent has been allocated for a new distribution centre to be established within 36 months, while the remaining 5.8 per cent will cover listing expenses.
The new facility is expected to increase distribution capacity as the group’s existing Bukit Raja distribution centre was operating at 80.2 per cent utilisation as of September 30.
BCG has also secured commitments from 19 cornerstone investors to subscribe for a combined 665.5 million shares, representing 96.2 per cent of the institutional offering, excluding the Bumiputera allocation.
Maybank Group’s Chief Executive Officer of Global Banking, Datuk John Chong said the IPO reflected investor confidence in the group’s market leadership and business model.
“The IPO broadens offerings for local and international investors alike by adding a Malaysian market leader and household name,” he said.
BCG operates more than 600 outlets nationwide under several brands, including BIG Pharmacy, CARiNG Pharmacy, Georgetown Pharmacy, Wellings Pharmacy, Ting Pharmacy and iCare Pharmacy.
The group is targeting a dividend payout ratio of up to 50 per cent of its net profit attributable to shareholders, subject to financial and operational requirements.
Applications for the public issue opened on October 29 and will close at 5:00 pm on November 5.
