KUALA LUMPUR (Oct 29): Big Caring Group Bhd, Malaysia’s biggest pharmacy chain operator en route to the Main Market, said it is aiming to add up to 50 stores annually over the next five years.
“We think it's time to actually prepare for the next phase of growth,” managing director Lee Meng Chuan said at a news conference in conjunction with the company’s listing prospectus launch on Thursday. The new stores will be located in both Peninsular Malaysia and East Malaysia, he said.
Big Caring is also keen to expand abroad and open to acquisitions, Lee said.
The company, which operates under brands BIG Pharmacy and CARiNG Pharmacy, now has 668 outlets with 24.2% market share as of end-September. Other brands under its wing include Georgetown Pharmacy, Wellings, Ting Pharmacy, and iCare Pharmacy.
The initial public offering (IPO) will raise RM637.8 million, of which nearly 90% will go toward debt repayment that will help Big Caring trim financing costs and generate about RM36 million in annual interest savings for the company.
The savings could support the group's capital expenditure for retail expansion and potential mergers and acquisitions, Lee noted.
Cash and bank balances totalled RM296.6 million against RM1.7 billion of bank borrowings as at end-June.
The company is also setting aside RM30 million to set up a new distribution centre in Klang, which is expected to reach full capacity within five years.