Elite seeks $141m from junior market
ELITE DIAGNOSTICS Limited is seeking $141 million of equity capital from an initial public offering that will open January 22.
The medical diagnostics company intends to use the proceeds for working capital and to pay down its debt. Elites’ longterm loans doubled last year to $114 million.
The junior market IPO will offer 70.68 million shares at $2 each, 14.9 per cent of which will be available to the general public.
Among the current owners of Elite, a successful IPO would result in Excel Investments holding 41 per cent of the company, followed by NCB Capital Markets with 23.7 per cent, Sagicor Investments at 7.9 per cent, and Barnett Limited at 6.3 per cent.
Excel Investments is the vehicle held by founding partners Warren Chung and Dr Neil Fong.
Elite commenced operations in August 2013 at Holborn Road, New Kingston, with backing from NCB Capital Markets and Sagicor Investments and Barnett Limited. The company added a new branch at Old Hope Road last November.
The company will list at a market multiple of roughly 13 times its historic earnings. Its offer is co-arranged by NCB Capital and Sagicor Investments.
In its first full year of operation ending June 2014, Elite made a loss of $47 million on revenue $58 million. The following year ended in the black, with a small profit of $500,000 while revenue increased by approximately 127 per cent. Its growth trajectory has been maintained since, with revenues coming in at $263 million and profit at $44 million for year ending June 2017.