Q&M Dental Group is about to monetise a curious investment it made amid its debt-fuelled expansion in China. On Nov 17, the company said it had earlier received in-principle approval from the Singapore Exchange to list shares of its 51%-owned subsidiary, Qinhuangdao Aidite High Technical Ceramic Co, on the New Third Board in Beijing. Aidite is a dental material manufacturer based in Qinhuangdao, Hebei. The group has already appointed Nanjing Securities Co as the issue manager for the listing. The Edge Singapore understands that Aidite has also identified the continuing sponsor for its listing on the NTB.

Q&M acquired its stake in Aidite last year for RMB80 million. Aidite produces zirconium oxide blocks, which are used to produce crowns, bridges, veneers and other dental restorations. Its R&D recently created the world’s first six-layered zirconium oxide block, which produces realistic-looking crowns without the staining or cindering procedure. “It cuts 20 minutes of the technician’s job but, more importantly, the colour is more lasting,” says Dr Ng Chin Siau, CEO of Q&M. “The blocks have been selling like hot cakes in China.”

Shares in Q&M are up some 70% this year, fuelled by excitement about its rapid expansion in China. Besides acquiring its stake in Aidite, the company has been expanding its network of dental hospitals and clinics. Q&M now also has a dental training school in China. “A lot of Singapore companies running China businesses have not seen good results. So, investors want to see why we have been able to manage our China business and make it a success. This is the selling point,” Ng tells The Edge Singapore.