The new kid on the block to join the Booming healthcare fraternity is Singapore-based healthcare firm, Singapore O&G Ltd ("SOG" in short). You can find the IPO Prospectus here.
According to its propectus & factsheet, SOG is a niche player in the healthcare industry as it focuses on the women's healthcare, with middle-level professionals as its main target audience. Thus, their primary focus is skewed towards the following: pregnancy care and delivery, the female reproductive system, and gynaecological and breast cancer.
SOG's total of 8 clinics are situated in five different locations as highlight below:
- 2 clinics in Parkway East Medical Centre,
- 3 clinics in Gleneagles Medical Centre,
- 1 clinic in Thomson Medical Centre,
- 1 clinic in Mount Elizabeth Novena Specialist Centre
- 1 clinic at Cassia Crescent.
From the picture seen on the left, its a rather tight timeline to subscribe for the public tranche of 2.2 million shares while 41.4mil will be placement shares.
- Just look at all the healthcare stocks in Singapore (Talkmed, Q&M Dental, Raffles Medical etc.) and how their share prices have shot up. SOG would do well to ride on the healthcare boom right now.
- Healthcare industry is one highly predictable industry, as we can easily visualise on how the private sector is serving the affluent market. In most cases, people want to give the best to their family members and would not scrimp on this.
- High net profit margins and huge free cash flow are 2 important metrics for a company to expand steadily without any burden of debt.
- Lastly, a moderate P/E ratio of 12.82 (based on FY14 EPS) and potential 7.3% dividend yield are deeply enticing.