Chularat Hospital (CHG), a private hospital chain in the East, has priced its 220 million initial public offering (IPO) shares at 6.30 baht each to mobilise 1.39 billion baht in fresh funds to expand its business to prepare for the advent of the Asean Economic Community (AEC).
The company plans to allocate 60% of the 220 million IPO shares to institutional investors and the remaining 40% to retail investors, managing director Kumpol Plussind said.
The IPO price represents a price-to-earnings ratio of 17 times, well below the hospital industry average of 27 times.
Mr Kumpol said 950 million baht of the IPO proceeds will be used to set up specialised medical centres for heart problems, breast cancer, brain surgery and children in its three hospitals.
The subscription is taking place from today until Friday, while CHG will start trading on the Stock Exchange of Thailand on May 16.
The company targets 20% growth of revenue and 10% growth of net profit this year.
Its revenue rose to 1.8 billion baht last year from 1.4 billion in 2011, while its net profit surged to 335 million baht from 171 million.
Patients with social security fund coverage contributed 55% of its revenue.
Its percentage of foreign patients is expected to increase from less than 5% following the launch of the AEC in 2016.
The company also plans to establish a new hospital to boost its revenue.
Thanachart Securities is its financial adviser for the IPO.