Cordlife Group, a cord blood and tissue banking service provider, is launching an initial public offering in Singapore to raise nearly $30 million.
In a statement on Wednesday, the company said it will issue 60 million new shares at $0.495 each. Cordlife aims to raise net proceeds of $26.3 million and trading of its shares is expected to start on the Singapore bourse on March 29.
“As a provider of cord blood and umbilical cord tissue banking services, we see much potential for growth and opportunities from our key markets - Singapore and Hong Kong,” said Jeremy Yee, chief executive officer of Cordlife.
Cordlife stores more than 35,000 cord blood units in Singapore and Hong Kong. It said of those, about 20,000 customers have chosen an annual payment plan, which provides a source of recurring cash flow to the company.
Under its business model, customers can opt for a one-time lump sum payment, or annual payments until the child reaches maturity.
The firm, which was incorporated in 2001, said it intends to use $16.6 million from the fund raising to expand its operations in Singapore and overseas.
PrimePartners Corporate Finance is the issue manager and co-placement agent, while UOB Kay Hian Private is the underwriter and co-placement agent.
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