Nikko Asset Management Asia, along with Qilin Asset Management and Maxi-Harvest Group, has recently become a cornerstone investor in specialty pharmaceutical and consumer healthcare group Hyphens Pharma International.
They have each entered into a cornerstone subscription agreement to subscribe for an aggregate of 30.4 million new shares for an aggregate subscription amount of about $5.89 million.
Healthcare is one of the exciting themes for investors globally, and Singapore-based Hyphens Pharma is one of the company that is expected to benefit from this trend.
The company is expected to ride on the increase in demand for healthcare products amid an aging population in the Asean countries.
An aging population is expected to result in increased health expenditure, and the continued economic development of Asean countries is expected to drive this spending.
In tandem with the economic growth in Singapore, Vietnam, Malaysia, Indonesia and the Philippines, these countries have seen an increase in their total health expenditure.
Hyphens Pharma has direct presence in Singapore, Vietnam, Malaysia, Indonesia and the Philippines.
The company intends to use the estimated net proceeds of $10.06 million raised from the initial public offering invitation and the issuance of the cornerstone shares for business expansion.
This includes potential acquisitions, joint ventures, product development and research and development collaborations, as well as the setting up of the group’s integrated facility.