China’s pharma tycoon said to mull $500m Singapore IPO of clinic arm

Luye Medical Group 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.

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.

Cancer Clinic

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.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.