IHH Listing A Major Step Towards Greater Cooperation Among Asean Bourses, Says PM Najib

KUALA LUMPUR, July 3 (Bernama) -- The listing of IHH Healthcare Bhd (IHH) further affirmed the development and the maturing of Malaysia's private healthcare sector and its emergence as a key player on the international stage, Malaysian Prime Minister Najib Razak said. Najib said the proposed dual listing of IHH on the Main Market of Bursa Malaysia and the Main Board of Singapore Exchange Securities Trading Ltd (SGX-ST) represented a major step towards greater cooperation among Asean bourses. "I can safely say that this also offers further evidence of the vibrancy and depth of our capital markets, once again underlining the fact that Malaysia is a bright spot on the otherwise dark canvas of global finance," he said at the launch of IHH's initial public offering prospectus here Tuesday. Also present were IHH chairman Dr Abu Bakar Suleiman, Khazanah Nasional Bhd's managing director Azman Mokhtar and CIMB Group chief executive officer Nazir Razak. Najib said the listing of IHH was an example of Khazanah Malaysia Bhd's commitment to delivering a clear and coherent regionalisation strategy, bringing together best-in-class business through a combination of mergers, acquisitions and collaborations. The listing also marked progress in the government-linked companies' transformation programme, which has witnessed the success of companies such as Axiata, Maybank (Malayan Banking) and CIMB developing their operations in Asean and beyond through well-integrated regional expansion plans, he said. "With this listing, IHH can further cement its role as a leading force in the global healthcare sector," he said. IHH plans to raise over US$1.9 billion (RM6 billion) in its IPO in Malaysia and Singapore by offering up to 2.23 billion shares comprising up to 1.8 billion new shares and 434.65 million of existing shares. Of the 2.23 billion shares, up to 349.15 million shares are being offered to the public in Malaysia and Singapore and up to 1.8 billion shares are set for institutional placements and cornerstone investors. The shares will be fully fungible, that is, IHH shareholders will be able to transfer their shares from Bursa Securities to trade on the SGX-ST and vice-versa. A total of 22 international, Malaysian and Singaporean cornerstone investors, including a variety of major, international fund managers and sovereign wealth funds, have signed up for an aggregate of 1.3 billion shares. The Malaysian and Singaporean public offerings opened at 10 am Tuesday and close at 5 pm on July 11 while the institutional and final retail price is expected to be fixed on July 12. Trading of the IHH's shares on Bursa Malaysia and SGX-ST is expected to commence on July 25. Managing director, Dr Lim Cheok Peng, said 90 per cent of the proceeds from the IPO would be used to pay the debt which amounted to about RM6 billion (US$1.9 billion) currently while the rest would be used for business expansion plan. He said the company was currently expanding its hospital business, adding 3,300 new beds, including the opening of Singapore's Mount Elizabeth Novena Hospital this month and the still-in-development Gleneagles Medini in Johor, Pantai Hospital Manjung in Perak, Gleneagles Kota Kinabalu and additional capacity in its existing hospitals in Turkey. "For the expansion of the hospitals, RM3 billion (around US$951.84 million), or 75 per cent, has been paid and the rest will be paid using proceeds from the IPO," he said. IHH has a global network operating 4,900 beds in 30 hospitals, with over 24,000 employees worldwide. Upon listing, IHH will be one of the largest listed private healthcare providers in the world by market capitalisation of RM23 billion (around US$7.29 billion). At the event, Najib also announced an allotment of RM50 million (around US$15.86 million) from Khazanah from the realised and targeted gain from investment in IHH to offer fully- and partially-sponsored care, in collaboration with the healthcare company, for needy patients in Malaysia, Singapore and Turkey. "Malaysia will get 70 per cent of this funding while 30 per cent will be split equally between Singapore and Turkey," he said. He said the programme would assist patients who require financial assistance to access and benefit from IHH's network of world-class doctors and medical facilities. -- BERNAMA