Mirae Asset Financial Group and CHA Medical Group will go for an initial public offering (IPO) of a new holding company after the acquisition of a medical corporation in Singapore. They aim to create a global medical chain by establishing a holding company, which has a medical corporation in the United States, Australia, Japan and Singapore as their subsidiary, in Singapore, a medical hub in Asia.
According to investment banking (IB) and medical industry sources on Feb. 1, Mirae Asset Private Equity under Mirae Asset Global Investment has decided to jointly raise 110 billion won (US$102.76 million) of funds with CHA Healthcare Co., a subsidiary of CHA Biotech Co., and acquire a medical corporation in Singapore with 20 billion won (US$18.68 million won) of annual income from investments. The two are also planning to establish a holding company based on the acquisition and list it on the Singapore Exchange (SGX).
Singapore is one of Asia top medical tourism countries and Mirae Asset PE and CHA Healthcare are especially interested in taking over a medical corporation, an aggregate of private hospitals in Singapore. An official from the industry said, “There are about 100 private hospitals located in a large building in the downtown area in the form of networks. They provide more sensitive medical care than general hospitals while separate companies own high-priced medical devices and offer medical tests. Each hospital can cut operating costs and turn over more than 1 billion won (US$933,184) thanks to a large number of patients with minor illness.”
Mirae Asset and CHA Healthcare have invested the funds in a general hospital in Los Angeles of the U.S. and runs a hospital specializing in immune cell treatment through a cell therapy clinic in Tokyo, Japan. CHA Healthcare bought a 52 percent stake in City Fertility Centre in Australia for 18.9 billion won (US$17.63 million) on Jan. 31. The two companies expects to raise the corporate value of their holding company by up to 20 times after listing on the SGX compared to profits before the IPO when they secure stable profits through existing investing hospitals in the U.S. and growth through the acquisition of Singaporean hospitals.