5 Things You Need To Know About Fullerton Health’s Initial Public Offering

Fullerton Health is one of the most anticipated initial public offerings of the year in Singapore’s stock market. The IPO is expected to raise about S$213 million for the company.

The company had recently filed its preliminary prospectus. Here are five things that you might want to know about Fullerton Health before it becomes a listed entity.

A solutions platform company

Fullerton Health sees itself as an integrated enterprise healthcare solutions platform company. It was established in 2011 and since then, it has made multiple acquisitions.

The company has panel management arrangements with more than 8,000-panel healthcare providers. In this way, Fullerton Health is able to serve its clients by providing access to a global healthcare network.

Future growth engine

As part of the IPO, Fullerton Health is planning to consolidate its businesses in the Greater China region under one subsidiary, Fullerton China (the process is currently underway).

Fullerton Health expects to growth its healthcare business in Hong Kong while finding more acquisition targets in the Greater China region. The company thinks there is strong growth potential in the healthcare industry there – it plans to use around half of its proceeds from its IPO to fund its expansion in Greater China.

Two key business segments

Fullerton Health arranges its business into two main segments: Enterprise Healthcare Services and Specialty Services.

Under Enterprise Healthcare Services, Fullerton Health provides primary care services, executive health screening, occupational health services, medical benefits management services, and call center services for its enterprise clients.

In the Specialty Services segment, the company’s services include medical diagnostic imaging, medical specialist, physiotherapy, dental, pharmaceutical, and medical assistance & evacuation.

Given its wide range of services, Fullerton Health is able to provide customized healthcare solutions to its clients .

Strong historical growth

Over the past few years, the company has experienced very strong growth in certain business metrics. For instance, its adjusted revenue and adjusted EBITDA have grown at annual rates of 45.1% and 71.3%, respectively. This was achieved through organic growth as well as acquisitions.

No bottom-line

Unfortunately, the strong growth numbers above did not flow to the bottom-line. In 2015, the company made a loss of S$11.4 million, a significant increase from a loss of S$1.4 million a year ago. Much of Fullerton Health’s loss was due to acquisition-related costs that dampened overall profitability.

Foolish Summary

Fullerton Health is an interesting company that is planning to IPO soon. But, some obstacles may have appeared. Earlier today, the Business Times reported that the company is facing delays to its listing after regulators had received complaints regarding the company’s prospectus.

The delay gives investors more time to learn about the company. On the whole, Fullerton Health is a fast growing company that has grown through organic means as well as acquisitions. But the company’s business expansion has not improved its bottom-line.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.