KUALA LUMPUR (Oct 20): Big Caring Group Bhd plans to launch its share sale this month in a bid to raise some RM2.45 billion, the Wall Street Journal reported.

The company, which operates over 600 pharmacies in Malaysia, plans to launch the initial public offering (IPO) in the final week of October with an aim to list on Main Market by mid-November, the financial newspaper reported citing unidentified people familiar with the matter.

The deal would value the company at over RM6 billion, the people reportedly said.

Big Caring is led by Lee Meng Chuan and his wife Lim Sin Yin, who is also an executive director. Both are pharmacists and opened their first outlet in Damansara Uptown in 2006.

Since then, the company has since expanded to all 13 states and three Federal Territories in Malaysia, commanding the highest revenue, number of licensed pharmacies and pharmacists, according to its draft prospectus.

The planned IPO comes at a time of global market turmoil as prolonged geopolitical conflict stoked concerns of rising interest rates to combat the elevated inflation.

However, Big Caring has secured commitments from dozens of cornerstone investors, who have agreed to take a significant portion of the IPO ahead of the offering, the Journal reported.

Cornerstone investors — typically large institutional investors such as pension funds and insurers — commit to take up a portion of IPO shares before they are marketed to other retail and institutional investors. Their presence helps to build up other investors’ confidence to invest in the IPO.

Last week, Big Caring signed a retail underwriting agreement with Maybank Investment Bank Bhd, RHB Investment Bank Bhd and AmInvestment Bank Bhd.

Maybank Investment Bank and RHB Investment Bank are the joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the IPO.

AmInvestment Bank is also a joint principal adviser, joint global coordinator, joint bookrunner and joint underwriter, while UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore branch are joint global coordinators and joint bookrunners.