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Announces Details of Proposed Listing on Main Board of SEHK
Highlights
- The fourth largest brand operator that carries
both over-the-counter (“OTC”) proprietary medicines and OTC proprietary Chinese
medicines in Hong Kong in 2019 by revenue[1] - As a subsidiary of Jacobson Pharma Corporation
Limited (“Jacobson Pharma”; Stock Code: 2633), JBM Healthcare is a unique field
player with drug expertise and a heritage that continues to foster a corporate
culture of prioritizing product efficacy and quality - Notable and growing brand portfolio along with a
proven brand management capability. As at March 31, 2020, JBM Healthcare
carried a total of 20 principal brands, including 11 third-party brands and 9
own brands - Extensive sales and distribution network in Hong
Kong, with a geographical reach spanning over China, Macau, Taiwan and select
countries in Southeast Asia, Europe, North America and the Caribbean Islands
HONG KONG SAR – Media OutReach – 25 January
2021 – JBM (Healthcare) Limited (“JBM Healthcare” or “Company“
and, together with its subsidiaries, the “Group“),
a Hong Kong-based company that markets and distributes branded healthcare
products with product footprint across Greater China, Southeast Asia and
certain other countries, today announced details of the proposed listing of its
shares on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”).
Mr. Patrick Wong,
Chief Executive Officer and Executive Director of JBM Healthcare (left) and Dr.
Chu Ka Wing, President of the Proprietary Chinese Medicine Business and
Executive Director of JBM Healthcare (right)
Jacobson Pharma indirectly holds 85.04% of JBM Shares. Upon
completion of the proposed spin-off, Jacobson Pharma will hold not less than
50% of the shares of JBM Healthcare (“JBM
Shares“) and that JBM Healthcare will remain a subsidiary of Jacobson
Pharma with its results continue to be consolidated into the accounts of
Jacobson Parma. Jacobson Pharma will effect a distribution in specie of a
portion of its JBM Shares if the spin-off proceeds, where each qualifying
shareholder of Jacobson Pharma will be entitled to one JBM Share for every
eight shares of Jacobson Pharma held.
JBM Healthcare has received pre-IPO Investments from three strategic
investors, namely New Heritage Healthcare Limited, who was one of the cornerstone
investors of Jacobson Pharma during its global offering in 2016 and an existing
shareholder of Jacobson Pharma; Gold Century Assets Limited, which its
wholly-owned subsidiary Kin Fung Weisen-U Company Limited, a joint venture
partner of the Group; and Profit Cape Limited, an indirect wholly-owned
subsidiary of Tycoon Group Holdings Limited (Stock Code: 3390), a company
listed on the Main Board of the Stock Exchange who is also JBM Healthcare’s
Hong Kong distributor and the parent company of its joint venture partner in a
jointly controlled entity. A total of 97,000,000 JBM Shares were issued
pursuant to the pre-IPO investments, representing approximately 11.43% of the
total issued JBM Shares immediately after completion of the pre-IPO investments,
with an aggregate consideration of HK$97.0 million,
Offering Details
The Group intends to offer a total of 44,686,000 JBM Shares
for the Public Offer. After deducting underwriting commissions and estimated
expenses payable in connection with the Public Offer and assuming an offer
price of HK$1.2 per Offer Share, net proceeds from the Public Offer are
estimated to be approximately HK$10.6 million. China Galaxy International Securities
(Hong Kong) Co., Limited is the Sole Sponsor of the listing.
The Hong Kong Public Offer will begin at 9:00 am on 26
January 2021 (Tuesday) and will end at 12:00 noon on 29 January 2021 (Friday).
The allotment results will be announced on 4 February 2021 (Thursday). Dealing
in JBM Healthcare’s Shares will commence on the Main Board of SEHK on 5
February 2021 (Friday) under the stock code 2161. The shares will be traded in
board lots of 2,000 shares each.
Investment
Highlights
A leading Hong
Kong-based brand operator with a notable and growing brand portfolio and proven
brand management capability
The Group was the fourth largest brand operator that carries
both OTC proprietary medicines and OTC proprietary Chinese medicines in Hong
Kong in 2019 by revenue1. As at March 31, 2020, the Group carried a
total of 20 principal brands, including 11 third-party brands and 9 own brands.
Besides, the Group has established a track record of introducing
category-leading overseas branded healthcare products to local markets and
revitalized the brand positioning of its heritage household brands based on
changing demographics and consumer behaviors. It is believed that its brand
management capability is among the core competitive advantages in the branded
healthcare market.
A unique field player
with a heritage of pharmaceutical background and quality-driven culture of
Jacobson Pharma
As a subsidiary of Jacobson Pharma, a leading generic drug
company in Hong Kong in 20191, the Group is a unique field player
with drug expertise and a heritage that continues to foster a corporate culture
of prioritizing product efficacy and quality. It is believed that, leveraged on
the ethical and trustworthy reputation and high market standing of the Jacobson
Pharma in the pharmaceutical sector, it makes third-party brand owners and
product originators are more inclined to choose to partner with the Group. In
addition, with the high standard of quality control inherited from an ethical pharmaceutical
company, JBM Healthcare is one of
the few GMP-accredited proprietary Chinese medicine manufacturers in Hong Kong1.
It is believed the long track record of providing reliable and quality products
position the Group to capture any future market opportunities.
Dual engines of
growth through sourcing and development of category-leading products and
acquisitions of synergetic brands
Backed by a specialized product development team with
relevant regional industry knowledge, the Group has a long proven track record
of deploying dual engines to support its business developments. Not only
organically growing its business through the in-depth understanding and clear
vision of healthcare trends and categories with market space, as well as
identifying product candidates or development with fitting allure and efficacy
attributes. The Group also demonstrated the consistent ability to realize
synergies through strategic acquisitions and investments, which are in line
with its growth and business directions. It enables JBM Healthcare to expand its
own brand portfolio successfully through acquisition and integration of
attractive branded healthcare products.
Extensive sales and
distribution network in Hong Kong with multi-region geographical reach
The Group has established an extensive sales and
distribution network in Hong Kong, with a geographical reach spanning over
China, Macau, Taiwan and select countries in Southeast Asia, Europe, North
America and the Caribbean Islands. The stable business relationships with key
retailers and the Hong Kong distributor, coupled with its reputation in delivering
high quality products and the wide distribution network, have enabled JBM
Healthcare to generate effective retail penetration and commercialization of its
new products. Armed with a hybrid of sales and distribution models tailored for
different products and geographic markets, It is believed that JBM Healthcare
is well-positioned to leverage its geographical presence and develop a
sustainable regional platform in Asia for branded healthcare products.
Seasoned management
team with in-depth industry knowledge and regional experience
The Group’s core management team comprises a group of
technically seasoned industry veterans with a strong track record and proven
execution capabilities. Vast majority of its directors and senior management
team, who on average has approximately 25 years of relevant industry experience,
are registered pharmacists or have pharmaceutical or medical academic
backgrounds. It is believed that the experienced senior management team has
been and will continue to be key to its success in deployment of its dual
engines of growth, allowing the Group to further integrate its regional
resources and take advantage of new opportunities.
Business Strategies
The PRC cross-border e-commerce market has grown rapidly as
a result of the rising demand for overseas healthcare products and an
increasingly structured and formalized cross-border e-commerce channel in the
PRC market. According to Frost & Sullivan Report, the gross merchandise
volume of pharmaceutical products e-commerce market in China is forecasted to
reach HK$452.2 billion by 2024. The Group intends to expand its product
offerings and deepen product penetration in China through cross-border
e-commerce initiatives. In order to increase its product penetration to end
consumers across all provinces, cities and counties in China and shorten its
product launch time, the Group will continue to actively deploy efforts and
resources in the development of cross-border e-commerce initiatives by
broadening presence in cross-border e-commerce channels across a variety of
popular platforms and engaging different cross-border e-commerce models.
Besides, the Group intends to offer eligible branded health products through
cross-border e-commerce channels while formulating integrated brand strategies
to raise consumer awareness and profile of its brands and its own online store
to support product launches and improve sales performance. The Group aims to
optimize its online presence and enhance the visibility of its brand and
products through multi-channel performance marketing initiatives, with the goal
to increase the product penetration in the PRC market.
In addition, the Group will further expand its portfolio
through organic growth and mergers and acquisitions in order to maintain its
competitive position and ensure its future growth and success. While the Group
will continue to seek organic growth for its product portfolio and adapt its
product offerings and develop product line extensions by building on existing
own brand products and their brand appeal, it also intends to pursue suitable
opportunities to acquire synergistic businesses in line with its growth and
business directions to enhance existing product portfolio and increase local
presence in other key markets for its products and business.
Leveraging the Group’s established local business
relationships and networks, JBM Healthcare intends to develop a branded
healthcare product sourcing and distribution platform in Asia through the
integration of its regional resources and foothold. The Group sources
third-party brand products and secure third-party manufacturing arrangements
for selected products in Greater China and other select countries in Southeast
Asia. In the short-term, the Group intends to leverage its established local
business relationships and networks to further enhance the on-the-ground
presence of its products through the establishment of joint venture and
expansion of existing relationship. In particular, JBM Healthcare has established
a joint venture with a renowned PRC state-owned conglomerate through a jointly
controlled entity with its Hong Kong distributor and intend to increase its
product penetration and explore other collaborative opportunities in China. For
the long-term, the Group aims to strengthen its geographical reach in Southeast
Asia and capture the growing demand for health and wellness products. The Group
will seek to leverage on its track record in those strategic locations to
further source and introduce new third-party brand products and eventually
develop into a sustainable branded healthcare product sourcing and distribution
platform in Asia.
Backed by an extensive network in Hong Kong, the Group
intends to unleash the sales and distribution potential of its Chinese medicine
practitioner network. It is believed that the direct access and frequent interaction
with Chinese medicine practitioners in Hong Kong enables the Group to gain
specific insights and understanding of their practices, preferences and
operational environment. JBM Healthcare will seek to utilize such insights to
capture new business opportunities and capitalize on this distribution channel.
Use of Proceeds
Assuming the Offer Price
is HK$1.2 per Offer Share, the net proceeds are expected to be approximately
HK$10.6 million, and the Group will apply such net proceeds for the following
purposes:
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Item
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Percentage
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47.2%
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43.4%
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9.4%
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