Caring Pharmacy’s IPO oversubscribed 33.66 times

Caring Pharmacy Group Bhd’s offer of 10.87 million shares of RM1.25 each to the public was oversubscribed by 33.66 times.

The community pharmacy operator, which is seeking a listing on the Main Market of Bursa Malaysia on Nov 13, said there were 20,137 applications valued at RM471.64mil from the public.

Caring managing director Chong Yeow Siang said the overwhelming response reflected the healthy fundamentals and the potential growth prospects.

The joint placement agents also confirmed the 14.20 million shares made available for private placement were oversubscribed, according to a statement issued on Saturday.

The listing exercise involved the public issuance of 35 million new shares, which would result in raising  RM43.75mil.

Caring said 41% of the proceeds would be used to open new pharmacy outlets and another 27% for working capital.

Kenanga Investment Bank Bhd is the principal adviser, managing underwriter, joint underwriter with MIDF Amanah Investment Bank Bhd, and joint placement agent with Inter-Pacific Securities Sdn Bhd.

Source: theSTAR 02-11-2013