KUALA LUMPUR (Oct 29): Pharmacy chains operator Big Caring Group Bhd is looking to raise RM2.03 billion in Malaysia's second-largest listing this year.
The initial public offering (IPO) is priced at RM1.08 per share, according to its prospectus. The company, which operates under brands BIG Pharmacy and CARiNG Pharmacy chains, will get RM637.8 million while a group of selling shareholders will collectively reap RM1.4 billion from the listing.
Applications for the Main Market IPO will close on Nov 5 and listing is scheduled for Nov 19.
“Changing demographics, greater health awareness and demand for accessible healthcare continue to drive growth in our industry,” managing director Lee Meng Chuan said at the launch of the listing prospectus on Thursday.
Big Caring will allocate 90% of the IPO proceeds to trim bank borrowings that totalled RM1.7 billion in the company’s balance sheet as of end-August.
Bulk of the debt was taken to finance previous acquisitions — RM888.3 million for Caring Pharmacy from 7-Eleven Malaysia Holdings Bhd (KL:SEM) in 2023, RM249.4 million for pharmaceutical distributor Medispec, and RM32.8 million for controlling stake in physiotherapy chain Your Physio.
The company is also setting aside RM30 million to set up new distribution centre in Klang to enhance its nationwide logistics network, with the remaining RM37.1 million earmarked for covering listing expenses.
At the IPO price, Big Caring will have a market capitalisation of RM8 billion, valuing the company at about 42 times its trailing earnings upon listing. Net profit for the financial year ended June 30, 2026 increased over 62% to RM231.8 million while revenue grew over 18% to RM4 billion.
Backers and investors
Big Caring is led by the husband-and-wife team of Lee and Lim Sin Yin, who serves as an executive director with the group. Both trained pharmacists, the couple opened their first retail outlet in Damansara Uptown in 2006.
Since then, the company has expanded nationwide with 668 outlets under several brands with 24.2% market share as of end-Sept. Other brands under its wing includes Georgetown Pharmacy, Wellings, Ting Pharmacy, and iCare Pharmacy.
The IPO is backed by cornerstone investors that include fund managers Aberdeen Group plc and AHAM Asset Management, and International Finance Corporation, the private-sector arm of the World Bank.
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.
More than a dozen existing shareholders, including Lee and Lim through their joint vehicle as well as private equity firm Creador, is cashing out part of their stakes in Big Caring through an offer for sale under the IPO.
Maybank Investment Bank and RHB Investment Bank are the joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for its IPO.
AmInvestment Bank serves as joint principal advisers, joint global coordinators, joint bookrunners and joint underwriters, while UBS is the joint global coordinators and joint bookrunners.