LYC Healthcare files and sets terms
Singapore orthopedic care provider LYC Healthcare files and sets terms for a $15 million US IPO
LYC Healthcare, which operates healthcare clinics and orthopedic surgery centers in Singapore, filed on Monday with the SEC to raise up to $15 million in an initial public offering.
The Singapore-based company plans to raise $15 million by offering 3 million shares at a price range of $4 to $6. At the midpoint of the proposed range, LYC Healthcare would command a market cap of $128 million.
It has stated that the rationale behind the listing is to enable the healthcare business to gain recognition and corporate stature through the listing status of its own in Singapore, in which it already has business presence in, as well as to further enhance its corporate reputation and profile which will assist in expanding its customer base. And also to gain access to the capital market in Singapore for capital raising and to provide the group with financial flexibility for future expansion and growth; and unlock shareholders’ value in the healthcare business and provide transparent valuation benchmark for the same in Singapore.
LYC Healthcare News
LYC Healthcare Acquired Remaining Stake of Specialist Clinics in S’pore
October 11, 2022 acquisition
LYC Medicare SG, the wholly-owned subsidiary of LYC Healthcare, had on 10 October 2022 completed the acquisitions of the remaining 49% stake in Singapore specialist clinics, T&T Medical Group （T&T） and HC Orthopaedic Surgery （HCOS） respectively.
To recap, the Group had initially acquired a 51% stake in T&T and HCOS in late 2020 to enhance its healthcare service offerings and expand its market presence in the Singapore healthcare sector.
T&T and HCOS provide general and specialised medical services particularly in the chronic disease and osteoporosis segments.
Since the initial acquisition, a new orthopaedic clinic by HCOS was established in Parkway East Hospital. This brings the total number of clinic under HCOS to two, including one located in Mount Elizabeth Hospital. In addition, a Magnetic Resonance Imaging （MRI） and Computerized Tomography （CT） scan services were introduced in T&T, building up its position as a one-stop chronic diseases centre.
The Significance of the Acquisition
“The completion of these acquisitions brings us one step closer in achieving our aim to list LYC Medicare SG on the Catalist board of the Singapore Exchange （SGX）。 Preparation work with our advisors is progressing well and we hope to complete the listing exercise early next year,” Managing Director cum Group Chief Executive Officer of LYC, Mr. David Sui Diong Hoe said.
“Leveraging on T&T’s and HCOS’s expertise and experience in the medical field, we believe we can attract more customers by enlarging our business presence across new locations, improving our facilities and generating more referrals from hospitals and other doctors,” he added.
Both companies contributed a cumulative revenue and profit after tax （PAT） of RM34.1 million and RM8.3 million respectively for the financial year ended （FYE） 31 March 2022 to LYC. With the completion of acquisitions of the remaining 49% stake, LYC Medicare SG will now be able to fully recognise T&T and HCOS financial results, and benefit from increasing its PAT attributable to Owners of the Company （PATANCI）。
As the acquisitions were settled via a combination of cash and new shares in LYC Medicare SG, both the vendors of T&T and HCOS will remain financially interested with a collective stake of 14.0% in LYC Medicare SG, which serves to further align their personal interests to the business of LYC Medicare SG.
LYC Healthcare be sued
Cause of Action
LYC Healthcare says key partner suing group, seeking to wind up aesthetics unit
KUALA LUMPUR （Nov 21）： Loss-making LYC Healthcare Bhd （KL:LYC）， which operates confinement centres and aesthetic clinics, said it is being sued by one of its key partners, aesthetic doctor Dr Dinesh Kanasen.
In a bourse filing on Friday, LYC said Dinesh is seeking several court orders against the group and two subsidiaries, LYC Beauty & Wellness Sdn Bhd and LYC Dental & Aesthetic Holdings Sdn Bhd, including for the winding-up of LYC Beauty & Wellness.
The lawsuit centres on alleged oppressive conduct in LYC Beauty & Wellness, a subsidiary formed after LYC acquired Tao Global Ventures Sdn Bhd in 2022 for RM4 million, which came with a two-year profit guarantee. Tao Global Ventures is the vehicle that owns medical aesthetic clinic Dr D Clinic and beauty and wellness centre iBody by Dr D, both founded by Dinesh.
Under the acquisition terms, LYC held 60% of LYC Beauty & Wellness while Dr Dinesh kept the remaining 40%. At the time, the group then positioned the acquisition as a strategic expansion of its women-and-child platform, with plans to build more centres around LYC’s confinement facilities.
According to the filing, Dinesh alleged that the way LYC Beauty & Wellness is being managed, including how its directors exercise their powers, is “oppressive and/or in disregard” of his interests as a shareholder in the subsidiary.
He is also seeking a declaration from the court that actions taken, or that may be taken, by LYC, LYC Dental & Aesthetic, LYC managing director Sui Diong Hoe and LYC chief executive officer of project management division Soh Hoo Hong, would unfairly disadvantage him as a shareholder.
Dinesh is also seeking an application to declare a 2022 service agreement between Tao Global Ventures and his wife, Dr Sarahanna Selvarajah, as invalid from the very beginning.
The doctor is also seeking a court order to wind up LYC Beauty & Wellness and have a liquidator appointed. He also wants damages, equitable compensation and indemnity costs against the respondents.
Impact of Litigation on the Company
LYC said it has appointed solicitors to defend its interests, adding that it “does not expect any material operational impact” from the litigation aside from legal costs and management time spent on the proceeding.
The group’s total investment in LYC Beauty & Wellness stands at RM4.81 million.
However, the group cautioned that a winding-up of LYC Beauty & Wellness could affect its net assets per share, gearing and earnings per share.
On Aug 7, the group announced that its external auditor, Crowe Malaysia PLT, issued a disclaimer of opinion on its financial statements for the financial year ended March 31, 2025 （FY2025） due to material uncertainties that cast significant doubt on its ability to continue as a going concern.
LYC recorded a net loss of RM12.22 million in FY2025, while its current liabilities exceeded current assets by RM63.52 million as at end-March. The group has been loss-making for the past nine consecutive financial years.
Redeemable preference shares totalling RM56.19 million in one of its subsidiaries are also due for redemption in 2025, with extensions granted only subject to settlement of dividends and proper documentation.
The ACE Market-listed group triggered Guidance Note 3 （GN3） criteria in June after its shareholders’ equity fell to RM25.36 million, or 25% or less of its issued capital, requiring it to submit a regularisation plan.
Shares of LYC closed unchanged at 2.5 sen on Friday, with a market capitalisation of RM18.5 million. Year to date, the counter has fallen more than 77%.
About LYC Healthcare
LYC Healthcare is a multidisciplinary specialist healthcare provider in Singapore offering an integrated suite of musculoskeletal services throughf five medical clinics and in-house advanced imaging facilities. It delivers computer-navigated total hip and knee replacements, keyhole and minimally invasive procedures, alongside MRI, CT, X-ray, BMD and ultrasound imaging, and on-site physiotherapy via a three-year collaboration. The company treats patients with degenerative joint diseases, spine conditions, sports injuries, metabolic diseases and osteoporosis, providing care from health screenings and diagnostic scans to treatment and rehabilitation.
Additionally,The company is not only involved in healthcare but is involved in computing and electronic service and others such as design and development of renewable energy products, trading of electronic and security products and building materials, investment holding, provision of related engineering services and provision of management services.
The Singapore, Singapore-based company was founded in 2024 and booked $13 million in revenue for the 12 months ended March 31, 2025. It plans to list on the Nasdaq but has not yet chosen a ticker （RC ticker: LYCH.RC）。 AC Sunshine Securities is the sole bookrunner on the deal.