Expansion in sight

IPO scheduled for last quarter of the year

THG plans to raise 5 billion baht to expand its specialised medical services.

Thonburi Hospital Group (THG), Thailand’s third-largest private hospital group, plans to raise 5 billion baht via its initial public offering (IPO) to fund the expansion of its specialised medical services and a new hospital.

Chairman Boon Vanasin said the IPO is slated for the last quarter of the year and the funds raised would be separated into two tranches.

“We need an estimated 5 billion baht for domestic expansion and investment. We plan to issue the IPO in September,” he said, adding that the company is still in talks with its financial adviser and the negotiations are expected to be concluded within the next two weeks.

The first tranche of 2 billion baht will be allocated for the renovation and expansion of the first and second branches of Thonburi Hospital.

The remaining 3 billion baht will be spent on upgrading its specialised centres for cancer and heart disease, said Dr Boon.

He said the group was mulling expansion after it set aside an investment budget of 10 billion baht for its five-year plan, of which 3 billion baht had already been spent.

The lion’s share of the sum was spent on investing abroad, including China and Myanmar, said Dr Boon.

“All of the group’s projects overseas are on track. In China, the construction of a 150-bed hospital in Weihai, worth 1 billion baht, will be completed this year,” he said.

He added that the company is building two hospitals in Yangon with a total of 400 beds, worth 1.5 billion baht. The construction is around 30% complete.

The company this year plans to buy 15 rai of land in Kalasin and another 15 rai of land in Uttaradit to build a 150-bed hospital in each province to serve middleincome earners.

In addition, the company plans to acquire 10-20 hospitals over the next five years in order to increase its medical service capacity.

Dr Boon said THG currently owns 18 hospitals nationwide and another four hospitals overseas with 3,000 beds in total.

Besides Myanmar, the company is also focusing on expanding into other Asean countries, especially Cambodia, Laos and Vietnam.

With its expansion plan, THG expects revenue this year to increase by 8-10% to 7 billion baht due to rising medical service capacity.

Revenue is expected to rise to 10 billion baht over the next two years.

“THG had to shift its focus to the overseas market because competition at home has intensified and it seems like the domestic market is saturated,” said Dr Boon.