Vision Lives

429 Pages·2014·4.57 MB·English

Restoring
Vision
Enriching
Lives
CORPORATE PROFILE
We are a comprehensive medical eye care service provider with ambulatory surgical centres in Malaysia and Singapore.
HEALTHCARE Placement in respect of 70,000,000 Placement
Our team of doctors are specialised in the felds of cataract and refractive surgery (including LASIK), vitreoretinal
ISEC HEALTHCARE LTD. Shares at S$0.28 for each Placement Share, diseases, corneal and external eye diseases, glaucoma, uveitis, oculoplastics, facial cosmetics and aesthetics surgery,
(Incorpora(tCedo minp tahney R Reepguibstlirca toiof nS iNnog.a:p 2o0r1e 4o0n0 21 8J5aHnu) ary 2014) payable in full on application adult strabismus and paediatric ophthalmology.
Many of our specialist doctors are key opinion leaders in their respective subspecialty felds.
OFFER DOCUMENT DATED 14 OCTOBER 2014
HEALTHCARE (Registered by the Singapore Exchange Securities Trading Limited, acting as units of shares traded on Catalist. You should be aware of the risks of investing Our vision is to provide high quality, compassionate, world-class eye care at an affordable level to the local and regional
agent on behalf of the Monetary Authority of Singapore (the “Authority”) on in such companies and should make the decision to invest only after careful community. Using state-of-the-art technology and facilities, our specialist doctors provide patients with excellent
14 October 2014) consideration and, if appropriate, consultation with your professional adviser(s).
ISEC HEALTHCARE LTD. medical eye care services.
(Company Registration No.: 201400185H) This document is important. If you are in any doubt as to the action This offer of Placement Shares is made in or accompanied by an offer
(Incorporated in the Republic of Singapore on 2 January 2014) you should take, you should consult your legal, fnancial, tax or other document that has been registered by the SGX-ST, acting as agent on
professional adviser(s). behalf of the Authority.
101 Thomson Road
#09-04 United Square PrimePartners Corporate Finance Pte. Ltd. (“PPCF” or the “Issue Manager A copy of this Offer Document has been lodged with and registered by the
wwSwi.nisgeacphoerael t3h0c7a5re9.1com an da pSpliocantsionr ”t)o h tahse oSnin gbaephoalrfe o Ef xISchEaCn Hge aSlethccuarirteie Ls tTdr.a (dthineg “ LCimomitepda (nthye” )“ mSGadXe- tShGe XS-SGTX,- SacTt ihnags a esx agmeinte do no rb aephaplrfo ovfe tdh eth Ae uctohnotreitny.t sN oefi theisr tOhfef eAr uDthoocruitmy enotr. OUR BUSINESS
ST”) for permission to deal in, and for quotation of, all the ordinary shares (the Neither the Authority nor the SGX-ST assumes any responsibility for the contents
“Shares”) in the capital of the Company already issued, the new Shares (the of this Offer Document, including the correctness of any of the statements or MALAYSIA SINGAPORE
“Placement Shares”) which are the subject of the Placement (as defned herein) opinions made or reports contained in this Offer Document. The SGX-ST does
and the new Shares which may be issued upon the exercise of the options to not normaly review the application for admission but relies on the Issue Manager ISEC KL ISEC SINGAPORE
be granted under the ISEC Healthcare Share Option Scheme (the “Option and Sponsor confrming that our Company is suitable to be listed and complies • Established in 2007 • Opened in August 2014 at Mount Elizabeth Novena
S
Achcaerepsta”n), coen oCf atpaplislict a(atiso dnse fwniell db he ecroenind).itional upon, inter alia, the issue of the whaitsh itnh ea nCya wtaalisy t cRounlesisd (earse d etfhnee md ehreitrse ino)f. tNhei tShhear rtehse Aoru tuhnoitrsit yo nf oSrh tahree sS,G bXe-iSngT • 12 full-time ophthalmologists; 2 visiting ophthalmologists Specialist Centre
Placement Shares, permission being granted by the SGX-ST for the listing offered for investment. The registration of this Offer Document by the SGX-ST • 15 consultation rooms, 5 laser suites, 4 operating theatres, • 3 full-time ophthalmologists
and quotation of al our existing Shares, the Placement Shares and the Option does not imply that the Securities and Futures Act (Chapter 289) of Singapore, executive suites and full general anaesthetic services • State-of-the-art ophthalmology equipment such as
S
r
oeththuaerrne bes deon nteo Cf tya oatuari lsiasint .g yM othuoern rioewfsr onpm ari sdak ni,nd w ryeitoshupo euwcti tll i nontfoe atr enhsya tav oepr p aalnicnyay c tisloahniam are ca cgoeaf pirnteesvdte unwsui,le l t bhoer oSInrT va’esn slyits iotnitnghg ei nr u loelegusar, lS hoahrv areer egbsue lieanntvo coryolv mreepsq luireirsdek mws ietwhnh.tsic, ohr a rreeq udieresmcreibntesd u ind tehre t hsee cStGioXn- • cJoeninttr eC ommission International (JCI) accredited eye care ACsulacrtgoaenrar’syc tsl auStiueteistet aWnadv aenlig ohct uRloepflraascttiicvse aSndui tfea,c iZale aisess’t hlaeteicsst
Issue Manager and Sponsor and/or the Placement Agent (as defned herein) if entitled “RISK FACTORS” of this Offer Document. • FY2013: Over 5,000 major surgeries performed, over
Sthhea aredsm wisilsl iboen iann Sdi nligstainpgo rdeo D noollta prsr.oceed. The dealing in and quotation of the After the expiration of six (6) months from the date of registration of this 70,000 patients served
Offer Document, no person shall make an offer of our Shares, or allot,
C
woithm lapragneire osr l imstoerde oenst Cabaltisahlisetd m coamy cparnriye sh ilgishtedr ionnv ethsetm Meanint rBisoka wrdh oef nth ceo SmGpXa-rSeTd. insos uoeff ocre sr eolrl eaqnuyi voaf loeunrt pSehrasroens ,o or np rtohme obtaesri so fo of uthr iCs oOmffpear nDyo wciullm aeuntht;o arinsde ISEC PENANG LEE HUNG MING EYE CENTRE
In particular, companies may list on Catalist without a track record of proftability or permit the offer of any of our Shares or the allotment, issue or sale of • Opened in February 2014 • Established in 2007 at Gleneagles Hospital, Singapore
and there is no assurance that there will be a liquid market in the shares or any of our Shares, on the basis of this Offer Document.
• 3 full-time ophthalmologists • Where ISEC Eye provides its services and helmed by
Issue Manager and Sponsor Placement Agent •
t4h celaintrice sc,o 2n struelatatmtioenn rto romoms,s 2 a onpdt ovmareiotruys r ofaocmilisti,e 2s ofopre rvaistiunagl • sSptaetcei-aolifs-t hmee-adritc atel cohpnhothloaglmy oanlodg ifsatc, iDlitrie Lsee Hung Ming
feld testing, laser and electrocardiography
PRIMEPARTNERS CORPORATE FINANCE PTE. LTD. MAYBANK KIM ENG SECURITIES PTE. LTD.
(Company Registration No.: 200207389D) (Company Registration No.: 197201256N)
(Incorporated in the Republic of Singapore) (Incorporated in the Republic of Singapore)
HEALTHCARE I S E C H E A LT H C A R E LT D .
Restoring
Vision
Enriching
Lives
CORPORATE PROFILE
We are a comprehensive medical eye care service provider with ambulatory surgical centres in Malaysia and Singapore.
HEALTHCARE Placement in respect of 70,000,000 Placement
Our team of doctors are specialised in the felds of cataract and refractive surgery (including LASIK), vitreoretinal
ISEC HEALTHCARE LTD. Shares at S$0.28 for each Placement Share, diseases, corneal and external eye diseases, glaucoma, uveitis, oculoplastics, facial cosmetics and aesthetics surgery,
(Incorpora(tCedo minp tahney R Reepguibstlirca toiof nS iNnog.a:p 2o0r1e 4o0n0 21 8J5aHnu) ary 2014) payable in full on application adult strabismus and paediatric ophthalmology.
Many of our specialist doctors are key opinion leaders in their respective subspecialty felds.
OFFER DOCUMENT DATED 14 OCTOBER 2014
HEALTHCARE (Registered by the Singapore Exchange Securities Trading Limited, acting as units of shares traded on Catalist. You should be aware of the risks of investing Our vision is to provide high quality, compassionate, world-class eye care at an affordable level to the local and regional
agent on behalf of the Monetary Authority of Singapore (the “Authority”) on in such companies and should make the decision to invest only after careful community. Using state-of-the-art technology and facilities, our specialist doctors provide patients with excellent
14 October 2014) consideration and, if appropriate, consultation with your professional adviser(s).
ISEC HEALTHCARE LTD. medical eye care services.
(Company Registration No.: 201400185H) This document is important. If you are in any doubt as to the action This offer of Placement Shares is made in or accompanied by an offer
(Incorporated in the Republic of Singapore on 2 January 2014) you should take, you should consult your legal, fnancial, tax or other document that has been registered by the SGX-ST, acting as agent on
professional adviser(s). behalf of the Authority.
101 Thomson Road
#09-04 United Square PrimePartners Corporate Finance Pte. Ltd. (“PPCF” or the “Issue Manager A copy of this Offer Document has been lodged with and registered by the
wwSwi.nisgeacphoerael t3h0c7a5re9.1com an da pSpliocantsionr ”t)o h tahse oSnin gbaephoalrfe o Ef xISchEaCn Hge aSlethccuarirteie Ls tTdr.a (dthineg “ LCimomitepda (nthye” )“ mSGadXe- tShGe XS-SGTX,- SacTt ihnags a esx agmeinte do no rb aephaplrfo ovfe tdh eth Ae uctohnotreitny.t sN oefi theisr tOhfef eAr uDthoocruitmy enotr. OUR BUSINESS
ST”) for permission to deal in, and for quotation of, all the ordinary shares (the Neither the Authority nor the SGX-ST assumes any responsibility for the contents
“Shares”) in the capital of the Company already issued, the new Shares (the of this Offer Document, including the correctness of any of the statements or MALAYSIA SINGAPORE
“Placement Shares”) which are the subject of the Placement (as defned herein) opinions made or reports contained in this Offer Document. The SGX-ST does
and the new Shares which may be issued upon the exercise of the options to not normaly review the application for admission but relies on the Issue Manager ISEC KL ISEC SINGAPORE
be granted under the ISEC Healthcare Share Option Scheme (the “Option and Sponsor confrming that our Company is suitable to be listed and complies • Established in 2007 • Opened in August 2014 at Mount Elizabeth Novena
S
Achcaerepsta”n), coen oCf atpaplislict a(atiso dnse fwniell db he ecroenind).itional upon, inter alia, the issue of the whaitsh itnh ea nCya wtaalisy t cRounlesisd (earse d etfhnee md ehreitrse ino)f. tNhei tShhear rtehse Aoru tuhnoitrsit yo nf oSrh tahree sS,G bXe-iSngT • 12 full-time ophthalmologists; 2 visiting ophthalmologists Specialist Centre
Placement Shares, permission being granted by the SGX-ST for the listing offered for investment. The registration of this Offer Document by the SGX-ST • 15 consultation rooms, 5 laser suites, 4 operating theatres, • 3 full-time ophthalmologists
and quotation of al our existing Shares, the Placement Shares and the Option does not imply that the Securities and Futures Act (Chapter 289) of Singapore, executive suites and full general anaesthetic services • State-of-the-art ophthalmology equipment such as
S
r
oeththuaerrne bes deon nteo Cf tya oatuari lsiasint .g yM othuoern rioewfsr onpm ari sdak ni,nd w ryeitoshupo euwcti tll i nontfoe atr enhsya tav oepr p aalnicnyay c tisloahniam are ca cgoeaf pirnteesvdte unwsui,le l t bhoer oSInrT va’esn slyits iotnitnghg ei nr u loelegusar, lS hoahrv areer egbsue lieanntvo coryolv mreepsq luireirsdek mws ietwhnh.tsic, ohr a rreeq udieresmcreibntesd u ind tehre t hsee cStGioXn- • cJoeninttr eC ommission International (JCI) accredited eye care ACsulacrtgoaenrar’syc tsl auStiueteistet aWnadv aenlig ohct uRloepflraascttiicvse aSndui tfea,c iZale aisess’t hlaeteicsst
Issue Manager and Sponsor and/or the Placement Agent (as defned herein) if entitled “RISK FACTORS” of this Offer Document. • FY2013: Over 5,000 major surgeries performed, over
Sthhea aredsm wisilsl iboen iann Sdi nligstainpgo rdeo D noollta prsr.oceed. The dealing in and quotation of the After the expiration of six (6) months from the date of registration of this 70,000 patients served
Offer Document, no person shall make an offer of our Shares, or allot,
C
woithm lapragneire osr l imstoerde oenst Cabaltisahlisetd m coamy cparnriye sh ilgishtedr ionnv ethsetm Meanint rBisoka wrdh oef nth ceo SmGpXa-rSeTd. insos uoeff ocre sr eolrl eaqnuyi voaf loeunrt pSehrasroens ,o or np rtohme obtaesri so fo of uthr iCs oOmffpear nDyo wciullm aeuntht;o arinsde ISEC PENANG LEE HUNG MING EYE CENTRE
In particular, companies may list on Catalist without a track record of proftability or permit the offer of any of our Shares or the allotment, issue or sale of • Opened in February 2014 • Established in 2007 at Gleneagles Hospital, Singapore
and there is no assurance that there will be a liquid market in the shares or any of our Shares, on the basis of this Offer Document.
• 3 full-time ophthalmologists • Where ISEC Eye provides its services and helmed by
Issue Manager and Sponsor Placement Agent •
t4h celaintrice sc,o 2n struelatatmtioenn rto romoms,s 2 a onpdt ovmareiotruys r ofaocmilisti,e 2s ofopre rvaistiunagl • sSptaetcei-aolifs-t hmee-adritc atel cohpnhothloaglmy oanlodg ifsatc, iDlitrie Lsee Hung Ming
feld testing, laser and electrocardiography
PRIMEPARTNERS CORPORATE FINANCE PTE. LTD. MAYBANK KIM ENG SECURITIES PTE. LTD.
(Company Registration No.: 200207389D) (Company Registration No.: 197201256N)
(Incorporated in the Republic of Singapore) (Incorporated in the Republic of Singapore)
HEALTHCARE I S E C H E A LT H C A R E LT D .
(1)
COMPETITIVE STRENGTHS PROSPECTS FINANCIAL HIGHLIGHTS (FYE 31 December)
TEAM OF HIGHLY QUALIFIED AND EXPERIENCED SPECIALIST ABLE TO LEVERAGE ON SCALE OF BUSINESS AND REPLICATE COMMON DRIVERS FOR PRIVATE OPHTHALMOLOGY SERVICES REVENUE (S$’m)
DOCTORS BUSINESS MODEL FEATURING STATE-OF-THE-ART- IN MALAYSIA AND SINGAPORE:
22.3
• All our specialist doctors have over 15 years of clinical experience, some TECHNOLOGY ACROSS ASIA PACIFIC Ageing population 20.6
are considered key opinion leaders in their felds of subspecialty and • Strong relationships with major suppliers, able to enjoy signifcant 18.6
• Growing demand from expanding elderly population suffering
provided advice for major eye care multinational companies including economies of scale when we negotiate for bulk purchases
from age-related eye conditions such as cataract or vitreoretinal
Alcon Group, Bausch & Lomb and Zeiss • Able to continuously invest in state-of-the-art equipment to improve
diseases
• Dr Lee Hung Ming, our Executive Vice Chairman: patient outcome and safety
- Over 25 years of clinical experience Increasing awareness
BUSINESS MODEL ALIGNS INTERESTS OF OUR SPECIALIST
- Key opinion leader in cataract surgery, LASIK surgery and treatment
DOCTORS WITH OUR GROUP AND SHAREHOLDERS • Increased information technology penetration increases patients’ 5.1 5.9
of cornea and external eye diseases awareness of eye diseases and likelihood to seek treatment
• Most of our specialist doctors are also shareholders and the Group
- Noted for having consistently performed innovative surgeries and
successfully adopted the latest technologies as they were introduced has been able to attract and retain experienced and highly qualifed Rising income level
specialist doctors
in the respective regions • Rising affuence among Malaysians and Singaporeans increases the FY2011 FY2012 FY2013 1Q2013 1Q2014
- He was Head of Refractive Surgery at Tan Tock Seng Hospital • W
the ms hthaere o pcopnosrtuultnaitnyc tyo fpeaerst icwipitaht eo iunr osupr eSchiaalriset Odpotciotno rSs cahnedm eo ffer affordability of private ophthalmology services GROSS PROFIT (S$’m) & GPM 53.4
between 2000 and 2007 and Clinical Director of Vision Correction GROSS PROFIT MARGIN (%)
Centre at National University Hospital from 2002 to 2007 • ISEC brand attracts new patients and centralised administrative Increased uptake of private insurance
51.4 51.8 51.5
• Dr Wong Jun Shyan, our Chief Executive Offcer: structure allows our specialist doctors to dedicate themselves • Serves as driver to encourage more people to seek private medical
principally to clinical matters services including ophthalmology-related services 11.5
- Over 23 years of clinical experience including from world renowned 10.7
medical institutions: Royal Victorian Eye and Ear Hospital, University of 9.6
Growth in medical tourism
Melbourne, the Beetham Eye Institute of Joslin Diabetes Centre, Boston 46.4
and the Department of Ophthalmology at Harvard Medical School • Malaysia: Revenue from medical tourism is estimated to grow at a
BUSINESS STRATEGIES & CAGR of 26.7% from S$106.0 million in 2009 to S$894.0 million by
- Key opinion leader in vitreoretinal diseases
2018
- Involved in Asia Pacifc advisory boards for key corporations in the FUTURE PLANS
• Singapore: Ophthalmology procedures are currently the second
Neyoev acratirse O ipnhdtuhsatlrmy ics uacnhd Aasll erBgaeyne Irn cHealthcare, Alcon Laboratories, GROWING THE ISEC BRAND NAME AND TO EXPAND IN ASIA most popular medical procedures amongst medical tourists. 2.3 3.1
PACIFIC Medical tourists is estimated to increase from 604,000 in 2013 to
over 1 million in 2018
PROVIDE HIGH QUALITY AND COMPREHENSIVE RANGE OF EYE • Expand into other Malaysian states such as Johor and Melaka
CARE SERVICES • Identifed Indonesia, Myanmar, Philippines and Taiwan as markets FY2011 FY2012 FY2013 1Q2013 1Q2014
• JCI accredited eye ambulatory surgical centre with high growth potential The region is underserved by qualifed ophthalmologists:
NET PROFIT (S$’m) & NPM
• Offer one-stop specialist medical eye care services NET PROFIT MARGIN (%) 30.4
EXPANDING OUR TALENT POOL OF SPECIALIST DOCTORS AND
• Tertiary centre treating patients with complicated medical eye MALAYSIA 0.01 ophthalmologist per 1,000 population
diseases who have been referred from doctors across the South- MANAGEMENT STAFF 25.0 27.6 25.3 25.1
East Asia region • Recruit and retain highly qualifed and talented management and SINGAPORE 0.04 ophthalmologist per 1,000 population
healthcare professionals to better provide for our patients and to 5.7 5.7
WELL POSITIONED TO CAPTURE THE GROWING DEMAND FOR expand the breadth and depth of our subspecialty services WORLD AVERAGE 0.036 ophthalmologist per 1,000 population 4.7
PRIVATE EYE CARE SERVICES OTHER MODERNISED 0.05-0.11 ophthalmologist per 1,000
BUILDING OUR REGIONAL NETWORK
• South-East Asia’s ageing population, rising income levels, increasing NATIONS population
private insurance coverage and growing medical tourism sector has • Build relationships with referral centres which will refer patients
led to rising demand for private eye care services requiring more complicated surgical procedures or medical Note: 1.8
consultations to our centres
(1) Source: Frost & Sullivan (S) Pte Ltd. See “Appendix L – Singapore and Malaysia 1.3
ASSET-LIGHT, STRONG CASH FLOW BUSINESS MODEL Opthalmology Market Overview”.
INVESTING IN THE LATEST TECHNOLOGY WHICH ALLOWS OUR
• Operating premises and some medical equipment are leased and
SPECIALIST DOCTORS TO KEEP UP TO DATE WITH NEWEST
shared amongst specialist doctors to maximise asset utilisation
PROCEDURES FY2011 FY2012 FY2013 1Q2013 1Q2014
• Allows us to generate recurring cash fows to fund future expansion
• Keeping abreast of the latest technology and keeping up to date
plans and/or for dividend payments
with innovative procedures in the ophthalmology feld
CAGR 9.5%
(1)
COMPETITIVE STRENGTHS PROSPECTS FINANCIAL HIGHLIGHTS (FYE 31 December)
TEAM OF HIGHLY QUALIFIED AND EXPERIENCED SPECIALIST ABLE TO LEVERAGE ON SCALE OF BUSINESS AND REPLICATE COMMON DRIVERS FOR PRIVATE OPHTHALMOLOGY SERVICES REVENUE (S$’m)
DOCTORS BUSINESS MODEL FEATURING STATE-OF-THE-ART- IN MALAYSIA AND SINGAPORE:
22.3
• All our specialist doctors have over 15 years of clinical experience, some TECHNOLOGY ACROSS ASIA PACIFIC Ageing population 20.6
are considered key opinion leaders in their felds of subspecialty and • Strong relationships with major suppliers, able to enjoy signifcant 18.6
• Growing demand from expanding elderly population suffering
provided advice for major eye care multinational companies including economies of scale when we negotiate for bulk purchases
from age-related eye conditions such as cataract or vitreoretinal
Alcon Group, Bausch & Lomb and Zeiss • Able to continuously invest in state-of-the-art equipment to improve
diseases
• Dr Lee Hung Ming, our Executive Vice Chairman: patient outcome and safety
- Over 25 years of clinical experience Increasing awareness
BUSINESS MODEL ALIGNS INTERESTS OF OUR SPECIALIST
- Key opinion leader in cataract surgery, LASIK surgery and treatment
DOCTORS WITH OUR GROUP AND SHAREHOLDERS • Increased information technology penetration increases patients’ 5.1 5.9
of cornea and external eye diseases awareness of eye diseases and likelihood to seek treatment
• Most of our specialist doctors are also shareholders and the Group
- Noted for having consistently performed innovative surgeries and
successfully adopted the latest technologies as they were introduced has been able to attract and retain experienced and highly qualifed Rising income level
specialist doctors
in the respective regions • Rising affuence among Malaysians and Singaporeans increases the FY2011 FY2012 FY2013 1Q2013 1Q2014
- He was Head of Refractive Surgery at Tan Tock Seng Hospital • W
the ms hthaere o pcopnosrtuultnaitnyc tyo fpeaerst icwipitaht eo iunr osupr eSchiaalriset Odpotciotno rSs cahnedm eo ffer affordability of private ophthalmology services GROSS PROFIT (S$’m) & GPM 53.4
between 2000 and 2007 and Clinical Director of Vision Correction GROSS PROFIT MARGIN (%)
Centre at National University Hospital from 2002 to 2007 • ISEC brand attracts new patients and centralised administrative Increased uptake of private insurance
51.4 51.8 51.5
• Dr Wong Jun Shyan, our Chief Executive Offcer: structure allows our specialist doctors to dedicate themselves • Serves as driver to encourage more people to seek private medical
principally to clinical matters services including ophthalmology-related services 11.5
- Over 23 years of clinical experience including from world renowned 10.7
medical institutions: Royal Victorian Eye and Ear Hospital, University of 9.6
Growth in medical tourism
Melbourne, the Beetham Eye Institute of Joslin Diabetes Centre, Boston 46.4
and the Department of Ophthalmology at Harvard Medical School • Malaysia: Revenue from medical tourism is estimated to grow at a
BUSINESS STRATEGIES & CAGR of 26.7% from S$106.0 million in 2009 to S$894.0 million by
- Key opinion leader in vitreoretinal diseases
2018
- Involved in Asia Pacifc advisory boards for key corporations in the FUTURE PLANS
• Singapore: Ophthalmology procedures are currently the second
Neyoev acratirse O ipnhdtuhsatlrmy ics uacnhd Aasll erBgaeyne Irn cHealthcare, Alcon Laboratories, GROWING THE ISEC BRAND NAME AND TO EXPAND IN ASIA most popular medical procedures amongst medical tourists. 2.3 3.1
PACIFIC Medical tourists is estimated to increase from 604,000 in 2013 to
over 1 million in 2018
PROVIDE HIGH QUALITY AND COMPREHENSIVE RANGE OF EYE • Expand into other Malaysian states such as Johor and Melaka
CARE SERVICES • Identifed Indonesia, Myanmar, Philippines and Taiwan as markets FY2011 FY2012 FY2013 1Q2013 1Q2014
• JCI accredited eye ambulatory surgical centre with high growth potential The region is underserved by qualifed ophthalmologists:
NET PROFIT (S$’m) & NPM
• Offer one-stop specialist medical eye care services NET PROFIT MARGIN (%) 30.4
EXPANDING OUR TALENT POOL OF SPECIALIST DOCTORS AND
• Tertiary centre treating patients with complicated medical eye MALAYSIA 0.01 ophthalmologist per 1,000 population
diseases who have been referred from doctors across the South- MANAGEMENT STAFF 25.0 27.6 25.3 25.1
East Asia region • Recruit and retain highly qualifed and talented management and SINGAPORE 0.04 ophthalmologist per 1,000 population
healthcare professionals to better provide for our patients and to 5.7 5.7
WELL POSITIONED TO CAPTURE THE GROWING DEMAND FOR expand the breadth and depth of our subspecialty services WORLD AVERAGE 0.036 ophthalmologist per 1,000 population 4.7
PRIVATE EYE CARE SERVICES OTHER MODERNISED 0.05-0.11 ophthalmologist per 1,000
BUILDING OUR REGIONAL NETWORK
• South-East Asia’s ageing population, rising income levels, increasing NATIONS population
private insurance coverage and growing medical tourism sector has • Build relationships with referral centres which will refer patients
led to rising demand for private eye care services requiring more complicated surgical procedures or medical Note: 1.8
consultations to our centres
(1) Source: Frost & Sullivan (S) Pte Ltd. See “Appendix L – Singapore and Malaysia 1.3
ASSET-LIGHT, STRONG CASH FLOW BUSINESS MODEL Opthalmology Market Overview”.
INVESTING IN THE LATEST TECHNOLOGY WHICH ALLOWS OUR
• Operating premises and some medical equipment are leased and
SPECIALIST DOCTORS TO KEEP UP TO DATE WITH NEWEST
shared amongst specialist doctors to maximise asset utilisation
PROCEDURES FY2011 FY2012 FY2013 1Q2013 1Q2014
• Allows us to generate recurring cash fows to fund future expansion
• Keeping abreast of the latest technology and keeping up to date
plans and/or for dividend payments
with innovative procedures in the ophthalmology feld
CAGR 9.5%
TABLE OF CONTENTS
CORPORATE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
GLOSSARY OF TECHNICAL TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS . . . . . . . . . . . 16
SELLING RESTRICTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
DETAILS OF THE PLACEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
LISTING ON CATALIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
INDICATIVE TIMETABLE FOR LISTING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
PLAN OF DISTRIBUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
OFFER DOCUMENT SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
THE PLACEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
EXCHANGE RATES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
PLACEMENT STATISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
RISK FACTORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
USE OF PROCEEDS AND EXPENSES OF THE PLACEMENT . . . . . . . . . . . . . . . . . . . . 50
DIVIDEND POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
SHARE CAPITAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
OWNERSHIP STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
SIGNIFICANT CHANGES IN PERCENTAGE OF OWNERSHIP . . . . . . . . . . . . . . . . . . . . 57
MORATORIUM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
DILUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
RESTRUCTURING EXERCISE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
GROUP STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
SUMMARY OF OUR PRO FORMA FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . 65
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL POSITION OF OUR PRO FORMA COMBINED FINANCIAL
INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
REVIEW OF RESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
REVIEW OF FINANCIAL POSITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
LIQUIDITY AND CAPITAL RESOURCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
CAPITAL EXPENDITURES, DIVESTMENTS AND COMMITMENTS . . . . . . . . . . . . . . . . . 84
CONTINGENT LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
INFLATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
FOREIGN EXCHANGE MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
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TABLE OF CONTENTS
SIGNIFICANT ACCOUNTING POLICIES CHANGES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
CAPITALISATION AND INDEBTEDNESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
INDUSTRY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
PROSPECTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
TREND INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
GENERAL INFORMATION ON OUR GROUP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
BUSINESS OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
TECHNOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
SERVICE QUALITY CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
MAJOR CUSTOMERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
MAJOR SUPPLIERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
MATERIAL PROPERTIES AND FIXED ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
SALES AND MARKETING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
INVENTORY MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
CREDIT POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
ENVIRONMENT, HEALTH AND SAFETY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
ORDER BOOK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
INTELLECTUAL PROPERTY RIGHTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
MATERIAL LICENCES, PERMITS, REGISTRATIONS AND APPROVALS. . . . . . . . . . . . . 111
INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
COMPETITION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
COMPETITIVE STRENGTHS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
BUSINESS STRATEGIES AND FUTURE PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
CORPORATE SOCIAL RESPONSIBILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
SEASONALITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
INTERESTED PERSON TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
PAST INTERESTED PERSON TRANSACTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
PRESENT AND ON-GOING INTERESTED PERSON TRANSACTIONS . . . . . . . . . . . . . . 123
GUIDELINES AND REVIEW PROCEDURES FOR FUTURE INTERESTED PERSON
TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
POTENTIAL CONFLICTS OF INTERESTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
DIRECTORS, EXECUTIVE OFFICERS AND EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . 126
MANAGEMENT REPORTING STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
DIRECTORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
EXECUTIVE OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
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TABLE OF CONTENTS
REMUNERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
SERVICE AGREEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
ISEC HEALTHCARE SHARE OPTION SCHEME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
CORPORATE GOVERNANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
EXCHANGE CONTROLS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
CLEARANCE AND SETTLEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
GENERAL AND STATUTORY INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
APPENDIX A – INDEPENDENT AUDITORS’ REPORT AND UNAUDITED PRO FORMA
COMBINED FINANCIAL INFORMATION FOR THE FINANCIAL YEARS ENDED
31 DECEMBER 2011, 2012, 2013 AND FOR THE FINANCIAL PERIOD FROM
1 JANUARY 2014 TO 31 MARCH 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1
APPENDIX B – INDEPENDENT AUDITORS’ REPORT AND AUDITED COMBINED
FINANCIAL STATEMENTS FOR THE FINANCIAL YEARS ENDED 31 DECEMBER 2011,
2012 AND 2013 IN RESPECT OF ISEC HEALTHCARE LTD. AND ITS SUBSIDIARIES. B-1
APPENDIX C – INDEPENDENT AUDITORS’ REPORT AND AUDITED COMBINED
FINANCIAL STATEMENTS FOR THE FINANCIAL YEARS ENDED 31 DECEMBER 2011,
2012 AND 2013 IN RESPECT OF ISEC EYE PTE. LTD. . . . . . . . . . . . . . . . . . . . . . . . . . C-1
APPENDIX D – INDEPENDENT AUDITORS’ REVIEW REPORT AND THE UNAUDITED
INTERIM CONDENSED COMBINED FINANCIAL STATEMENTS FOR THE FINANCIAL
PERIOD FROM 1 JANUARY 2014 TO 31 MARCH 2014 IN RESPECT OF ISEC
HEALTHCARE LTD. AND ITS SUBSIDIARIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1
APPENDIX E – INDEPENDENT AUDITORS’ REVIEW REPORT AND THE UNAUDITED
INTERIM CONDENSED COMBINED FINANCIAL STATEMENTS FOR THE FINANCIAL
PERIOD FROM 1 JANUARY 2014 TO 31 MARCH 2014 IN RESPECT OF ISEC EYE
PTE. LTD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1
APPENDIX F – TERMS AND CONDITIONS AND PROCEDURES FOR APPLICATION . F-1
APPENDIX G – SUMMARY OF SELECTED ARTICLES OF ASSOCIATION OF OUR
COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G-1
APPENDIX H – DESCRIPTION OF OUR SHARES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H-1
APPENDIX I – SUMMARY OF RELEVANT MALAYSIA AND SINGAPORE LAWS AND
REGULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1
APPENDIX J – SUMMARY OF MALAYSIA LAW AND SINGAPORE LAW RELATING TO
TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . J-1
APPENDIX K – RULES OF THE ISEC HEALTHCARE SHARE OPTION SCHEME. . . . . K-1
APPENDIX L – SINGAPORE AND MALAYSIA OPHTHALMOLOGY MARKET
OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L-1
3
CORPORATE INFORMATION
BOARD OF DIRECTORS : Sitoh Yih Pin (Non-Executive Chairman and Independent
Director)
Dr Lee Hung Ming (Executive Vice Chairman)
Dr Wong Jun Shyan (Executive Director and CEO)
Professor Low Teck Seng (Independent Director)
Lim Wee Hann (Independent Director)
COMPANY SECRETARY : Yoo Loo Ping (ACIS)
REGISTERED OFFICE : 101 Thomson Road
#09-04 United Square
Singapore 307591
PRINCIPAL PLACES OF : Malaysia
BUSINESS
Level 7 & 8, Centrepoint South
The Boulevard, Mid Valley City
59200 Kuala Lumpur
Malaysia
229-G Jalan Burma
10050 Pulau Pinang
Malaysia
Singapore
Mount Elizabeth Novena Specialist Centre
38 Irrawaddy Road
Units #08-58 to 63
Singapore 329563
Lee Hung Ming Eye Centre
6A Napier Road
#03-00 Gleneagles Hospital
Singapore 258500
ISSUE MANAGER AND : PrimePartners Corporate Finance Pte. Ltd.
SPONSOR 20 Cecil Street
#21-02 Equity Plaza
Singapore 049705
PLACEMENT AGENT : Maybank Kim Eng Securities Pte. Ltd.
50 North Canal Road
#03-01
Singapore 059304
SHARE REGISTRAR AND : Boardroom Corporate & Advisory Services Pte. Ltd.
SHARE TRANSFER OFFICE 50 Raffles Place
#32-01 Singapore Land Tower
Singapore 048623
4
CORPORATE INFORMATION
SOLICITORS TO THE : Rajah & Tann Singapore LLP
PLACEMENT AND LEGAL 9 Battery Road
ADVISER TO OUR COMPANY #25-01 Straits Trading Building
AS TO SINGAPORE LAW Singapore 049910
LEGAL ADVISER TO OUR : Christopher & Lee Ong
COMPANY AS TO MALAYSIAN Level 22, Quill 7
LAW No. 9, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
INDEPENDENT AUDITORS : BDO LLP
AND REPORTING 21 Merchant Road
ACCOUNTANTS #05-01
Singapore 058267
Partner-in-charge: Leong Hon Mun Peter (a member of
the Institute of Singapore Chartered Accountants)
INDUSTRY RESEARCH : Frost & Sullivan (S) Pte Ltd
CONSULTANT 100 Beach Road
#29-01/11 Shaw Tower
Singapore 189702
PRINCIPAL BANKERS : Malaysia
AmBank (M) Berhad
Level 26, Menara AmBank
8, Jalan Yap Kwan Seng
50450 Kuala Lumpur
Malaysia
Malayan Banking Berhad
Mid Valley Branch
G(E)-016, Ground Floor
Mid Valley Megamall, Mid Valley City
59200 Kuala Lumpur
Malaysia
Singapore
United Overseas Bank Limited
Shenton Way Branch
2 Shenton Way
#01-01 SGX Centre 1
Singapore 068804
RECEIVING BANKER : Malayan Banking Berhad
2 Battery Road
Maybank Tower
Singapore 049907
5
DEFINITIONS
In this Offer Document and the accompanying Application Forms, the following definitions apply
where the context so admits:
Group Companies
“Company” or “ISEC” : ISEC Healthcare Ltd.
“Group” : Our Company and our subsidiaries
“ISEC Eye” : ISEC Eye Pte. Ltd.
“ISEC KL” : ISEC Sdn. Bhd.
“ISEC Penang” : ISEC (Penang) Sdn. Bhd.
“ISEC Singapore” : International Specialist Eye Centre Pte. Ltd.
Other Corporations and Agencies
“Authority” or “MAS” : The Monetary Authority of Singapore
“CDP” : The Central Depository (Pte) Limited
“CPF” : The Central Provident Fund
“EPF” : The Employee Provident Fund
“Independent Auditors and : BDO LLP
Reporting Accountants”
“IRAS” : The Inland Revenue Authority of Singapore
“Issue Manager and : PrimePartners Corporate Finance Pte. Ltd.
Sponsor” or “PPCF”
“Lee Hung Ming Eye : Lee Hung Ming Eye Centre, the name of the clinic and
Centre” or “LHM Eye business operated by Parkway Eye Centre (a sole
Centre” proprietorship with Business Registration No. 53092774L
owned by PHS). Prior to September 2014, the clinic was
known as Parkway Eye Centre
“MMC” : Malaysian Medical Council
“MOH Malaysia : The Ministry of Health, Government of Malaysia
“MOH Singapore” : The Ministry of Health, Government of Singapore
“PHS” : Parkway Hospitals Singapore Pte. Ltd.
6