Luye Life Sciences Group Ltd., run by acquisitive Chinese entrepreneur Liu Dianbo, is considering a Singapore initial public offering of its health-care services arm that could raise as much as $500 million, people with knowledge of the matter said.
The company’s Luye Medical Group unit plans to evaluate proposals from investment banks as soon as next month, according to the people. The Singapore-based company aims to sell shares later this year, the people said, asking not to be identified as the discussions are private.
A $500 million offering would be the largest IPO in the city-state from a health-care company in more than five years, according to data compiled by Bloomberg. Luye Medical is seeking to raise funds after expanding through overseas acquisitions including the 2016 purchase of Healthe Care Australia Pty, the nation’s third-largest private hospital operator.
Last year, Luye Medical bought Pulse Health Ltd., a Sydney-based chain of specialist hospitals. It is also the biggest shareholder in Singapore-listed AsiaMedic Ltd., which provides diagnostic and screening services, Bloomberg-compiled data show.
Luye Life Sciences separately controls Luye Pharma Group Ltd., a Hong Kong-listed drugmaker with a market value of about $3.1 billion. The pharmaceutical company sells medicines for conditions including cancer and cardiovascular disease. Luye Pharma said Tuesday that phase II clinical trials in China for one of its drugs showed positive results for the treatment of major depressive disorder. Its shares rose as much as 8.8 percent Wednesday, hitting the highest intraday level in two years.
Deliberations on the potential listing are at an early stage, and details including the fundraising target could change, the people said. A representative for Luye Life Sciences said she couldn’t immediately comment, while a representative for Luye Medical didn’t immediately reply to emails and phone calls.
Luye Medical and its partners run about 50 health-care facilities spread across Australia, China, Singapore, South Korea and New Zealand, according to the company’s website. Its clinics and hospitals provide therapies related to oncology, orthopedics, gynecology and the cardiovascular system.
Last year, Luye Medical became a major shareholder of Oncocare Cancer Centre, one of Singapore’s largest private oncology practices, its website shows. The company also opened Luye Ellium Cosmetic Surgery Clinic and Luye Goodwill Dental Clinic in the western Chinese city of Chongqing.
Liu, a professor turned businessman, said in a 2016 interview he was planning to list the health-care services business within three years. The group is looking for hospital deals in regions including Australia, Singapore, Southeast Asia, the U.S. and Europe, with a special focus on those with treatment specialties that can be useful for China, Liu said at the time.