HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Foundation Healthcare Holdings / Equity Capital Markets

<ul>
<li>Foundation Healthcare's light-asset model means no need to bear high capital expenditure for hospital-building, and ROE may be higher, with faster expansion speed through acquisitions as the network expands rapidly</li>
<li>The lack of own hospital means unable to provide inpatient/emergency services, with limited service scope. Since Foundation Healthcare is highly dependent on acquisitions, integration risks are higher than organic growth.</li>
<li>Foundation Healthcare's valuation would be lower than Raffles Medical and IHH Healthcare. In other words, the valuation based on IPO pricing (S$0.76-S$0.92) falls within reasonable range among similar healthcare stocks.</li>
</ul>


Foundation Healthcare's light-asset model means no need to bear high capital expenditure for hospital-building, and ROE may be higher, with faster expansion speed through acquisitions as the network expands rapidly
The lack of own hospital means unable to provide inpatient/emergency services, with limited service scope. Since Foundation Healthcare is highly dependent on acquisitions, integration risks are higher than organic growth.
Foundation Healthcare's valuation would be lower than Raffles Medical and IHH Healthcare. In other words, the valuation based on IPO pricing (S$0.76-S$0.92) falls within reasonable range among similar healthcare stocks.


Pre-IPO Foundation Healthcare - The IPO Pricing Is Reasonable

Equity Long-Short

Mo Aziz

Equity Bottom-Up

Foundation Healthcare Holdings / Equity Bottom-Up

<ul>
<li>Singapore's largest private specialist platform by doctor/clinic count, 60/40 JVs with selling doctors hand ~40% of Specialists profit — and 2/3 FY25A group profit — to non-controlling interests before shareholders.</li>
<li>Bottom-Up SOTP: Specialists S$1,182m post-NCI, Medical Centres S$112m, AVA® S$24m, less S$217m net debt = S$1,100m vs. S$1,009.8m offer-price market cap.</li>
<li>We initiate with a BUY with TP of S$0.83 (+19%): Specialists alone outvalues the whole deal post-NCI; Medical Centres and AVA® are priced for free. True P/E ~21x, not 74x.</li>
</ul>


Singapore's largest private specialist platform by doctor/clinic count, 60/40 JVs with selling doctors hand ~40% of Specialists profit — and 2/3 FY25A group profit — to non-controlling interests before shareholders.
Bottom-Up SOTP: Specialists S$1,182m post-NCI, Medical Centres S$112m, AVA® S$24m, less S$217m net debt = S$1,100m vs. S$1,009.8m offer-price market cap.
We initiate with a BUY with TP of S$0.83 (+19%): Specialists alone outvalues the whole deal post-NCI; Medical Centres and AVA® are priced for free. True P/E ~21x, not 74x.


Foundation Healthcare Holding (FHH SP) - Priced Like a Hospital, Worth Like Three

APAC IPOs & Placements, Aequitas Research

Hong Jie Seow

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/foundation-healthcare-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:46418:1" rel="noopener">Foundation Healthcare (2231723D SP)</a> raised US$187m in its Singapore IPO.</li>
<li>Foundation Healthcare Holdings operates as an integrated private healthcare platform in Singapore.</li>
<li>We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.</li>
</ul>



Foundation Healthcare (2231723D SP) raised US$187m in its Singapore IPO.
Foundation Healthcare Holdings operates as an integrated private healthcare platform in Singapore.
We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.


Aequitas: Foundation Healthcare IPO Trading - Decent Pricing

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Foundation Healthcare, Singapore’s largest private multi-specialty healthcare network, has filed for Singapore IPO. The IPO will consist of fresh issue as well as OFS from SeaTown (indirectly owned by Temasek).</li>
<li>The company plans to use IPO proceeds to fund acquisitions in Singapore, investments to support expansion plans in new geographies, and for general corporate and working capital purposes.</li>
<li>Foundation Healthcare has a proven track record of strong growth in revenue and Adjusted EBITDA. With scalable business model, bottomline outpaced revenue growth.</li>
</ul>


Foundation Healthcare, Singapore’s largest private multi-specialty healthcare network, has filed for Singapore IPO. The IPO will consist of fresh issue as well as OFS from SeaTown (indirectly owned by Temasek).
The company plans to use IPO proceeds to fund acquisitions in Singapore, investments to support expansion plans in new geographies, and for general corporate and working capital purposes.
Foundation Healthcare has a proven track record of strong growth in revenue and Adjusted EBITDA. With scalable business model, bottomline outpaced revenue growth.


Foundation Healthcare Pre-IPO: Leadership Amid Favorable Market Dynamics to Drive Sustainable Growth

<ul>
<li>
<a href="https://www.smartkarma.com/entities/foundation-healthcare-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:46418:1" rel="noopener">Foundation Healthcare (2231723D SP)</a> is looking to raise up to US$226m in its upcoming Singapore IPO.</li>
<li>Foundation Healthcare Holdings operates as an integrated private healthcare platform in Singapore. Its core business and primary revenue driver are its clinics.</li>
<li>In this note, we talk about the company's past performance and valuations.</li>
</ul>



Foundation Healthcare (2231723D SP) is looking to raise up to US$226m in its upcoming Singapore IPO.
Foundation Healthcare Holdings operates as an integrated private healthcare platform in Singapore. Its core business and primary revenue driver are its clinics.
In this note, we talk about the company's past performance and valuations.


Aequitas: Foundation Healthcare IPO - A Healthy Discount to Singapore Healthcare Peers

Singapore

Foundation Healthcare Holdings Pte. Ltd. operates as a holding company. The Company, through its subsidiaries, offers diagnostic radiology, hand and orthopaedic surgery, cardiology, ophthalmology, neurology, obstetrics and gynaecology, paediatric medicine, and treatment of infertility-related services. Foundation Healthcare Holdings serves patients in Singapore.

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Foundation Healthcare Holdings (FHH SP)

Pre-IPO Foundation Healthcare - The IPO Pricing Is Reasonable

UBS’ share stabilization termination indicates the disappearance of "policy bottom". FHH's current valuation is 19.5x PE, lower than Raffles...

Xinyao (Criss) Wang

Foundation Healthcare Holding (FHH SP) - Priced Like a Hospital, Worth Like Three

Singapore's largest private specialist platform values Specialists higher than offer price. Underwater IPO shows value to our TP of S$0.83 (+19%).

Mo Aziz

Aequitas: Foundation Healthcare IPO Trading - Decent Pricing

Foundation Healthcare Holdings raised US$187m in Singapore IPO, operating as an integrated private healthcare platform. This note focuses on...

Hong Jie Seow

Foundation Healthcare Pre-IPO: Leadership Amid Favorable Market Dynamics to Drive Sustainable Growth

Foundation Healthcare, Singapore’s largest private multi-specialty healthcare network, has filed for IPO. The IPO will consist of fresh issue as...

Tina Banerjee

Aequitas: Foundation Healthcare IPO - A Healthy Discount to Singapore Healthcare Peers

Foundation Healthcare Holdings in Singapore is set to raise up to US$226m in its IPO, focusing on its integrated private healthcare platform and...

Hong Jie Seow

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)

Pre-IPO Foundation Healthcare - The IPO Pricing Is Reasonable

UBS’ share stabilization termination indicates the disappearance of "policy bottom". FHH's current valuation is 19.5x PE, lower than Raffles...

Xinyao (Criss) Wang

Foundation Healthcare Holding (FHH SP) - Priced Like a Hospital, Worth Like Three

​Singapore's largest private specialist platform values Specialists higher than offer price. Underwater IPO shows value to our TP of S$0.83 (+19%).

Mo Aziz

Aequitas: Foundation Healthcare IPO Trading - Decent Pricing

​Foundation Healthcare Holdings raised US$187m in Singapore IPO, operating as an integrated private healthcare platform. This note focuses on...

Hong Jie Seow

Foundation Healthcare Pre-IPO: Leadership Amid Favorable Market Dynamics to Drive Sustainable Growth

Foundation Healthcare, Singapore’s largest private multi-specialty healthcare network, has filed for IPO. The IPO will consist of fresh issue as...

Tina Banerjee

Aequitas: Foundation Healthcare IPO - A Healthy Discount to Singapore Healthcare Peers

​Foundation Healthcare Holdings in Singapore is set to raise up to US$226m in its IPO, focusing on its integrated private healthcare platform and...

Hong Jie Seow

Singapore's largest private specialist platform values Specialists higher than offer price. Underwater IPO shows value to our TP of S$0.83 (+19%).

Foundation Healthcare Holdings raised US$187m in Singapore IPO, operating as an integrated private healthcare platform. This note focuses on...

Foundation Healthcare Holdings in Singapore is set to raise up to US$226m in its IPO, focusing on its integrated private healthcare platform and...