Basel Medical Group Ltd Announces Exercise of Overallotment Option

Rhea-AI Summary

Basel Medical Group (Nasdaq: BMGL) announced the full exercise of the overallotment option from its IPO underwriters to purchase 330,750 additional ordinary shares at US$4.00 per share. The exercise generated gross proceeds of $1,323,000, bringing total IPO proceeds to US$10,143,000 before deductions.

The company's shares began trading on the Nasdaq Capital Market on February 25, 2025. The Singapore-based clinical provider plans to use the net proceeds for:

• Potential mergers and acquisitions
• Business expansion (clinic space, auxiliary services, staff hiring, technology upgrades)
• Daily operations and working capital

The firm commitment offering was led by Cathay Securities as lead underwriter with Revere Securities as co-underwriter.

Positive

• Successfully raised additional US$1.32M through full exercise of overallotment option
• Total IPO proceeds of US$10.14M provides substantial capital for expansion
• Strong underwriter confidence demonstrated by full exercise of overallotment

Negative

• Potential shareholder dilution from additional 330,750 shares issued
• IPO expenses and underwriting discounts will reduce net proceeds available to company

Insights

Financial Analyst

The full exercise of Basel Medical Group's overallotment option signals strong investor demand following their February 2025 IPO. This move by underwriters to purchase an additional 330,750 shares at the $4.00 IPO price generated $1,323,000 in gross proceeds, bringing total IPO proceeds to $10,143,000.

This development is particularly positive as the complete exercise of the greenshoe option typically indicates the IPO was well-received and trading stability is expected. For a relatively small-cap healthcare provider ($74 million market cap), securing over $10 million provides substantial growth capital.

The company's outlined capital allocation priorities demonstrate a strategic growth focus: 1) potential M&A to consolidate in the fragmented orthopedic/neurosurgical space; 2) clinic expansions and service diversification across X-ray, physiotherapy and lab testing; and 3) operational improvements through technology upgrades and expanded staff.

For a clinical services provider like BMGL, this capital infusion enhances their competitive positioning in Singapore's premium medical services market while providing flexibility to pursue acquisition targets. The firm commitment underwriting structure further validates institutional confidence in their business model.

Investment Strategist

This overallotment exercise represents a significant liquidity event for Basel Medical Group beyond the headline numbers. By adding 15% more shares to the original offering, BMGL has effectively secured the maximum possible capital from their IPO structure while demonstrating substantial market confidence in their business model.

The strategic implications are noteworthy for this orthopedic and neurosurgical provider. First, with $10.1M in gross proceeds, they've created a substantial war chest relative to their $74M market cap. Second, their capital deployment strategy signals a disciplined growth approach - prioritizing both organic expansion and strategic acquisitions in Singapore's specialized healthcare market.

The M&A focus is particularly compelling as it suggests BMGL aims to consolidate fragmented specialty practices, potentially creating economies of scale in high-margin medical services. Their service expansion into diagnostic and auxiliary services indicates vertical integration to capture more of the patient care value chain.

Additionally, the firm commitment underwriting structure (versus best efforts) demonstrates strong institutional confidence in BMGL's financial fundamentals and growth trajectory. With two established underwriters supporting the offering, this successful capital raise positions BMGL to execute its stated expansion initiatives while maintaining adequate working capital for operational stability.

Singapore, March 19, 2025 (GLOBE NEWSWIRE) -- Basel Medical Group Ltd (the “Company”) (Nasdaq: BMGL), a Singapore-based clinical provider of general and subspecialized orthopedic and trauma services, sports medicine and surgery, orthopedic procedures, as well as neurosurgical treatments, today announced the full exercise of the overallotment option by the representative of the underwriters of its initial public offering to purchase an additional 330,750 ordinary shares at a price of US$4.00 per share and the closing of such issuance. The shares of the Company commenced trading on the Nasdaq Capital Market on February 25, 2025, under the ticker symbol “BMGL”.

The gross proceeds from this over-allotment closing were $1,323,000 and the aggregate gross proceeds from this offering were US$10,143,000, before deducting underwriting discounts and offering expenses payable by the Company.

The Company intends to use the net proceeds of the offering for (i) potential mergers and acquisitions, (ii) business expansion, such as additional clinic space, increasing auxiliary service capabilities, including X-ray, physiotherapy and laboratory testing services, hiring additional medical practitioners and staff, upgrading of technology systems, and bolstering of marketing expenditure, and (iii) daily operations and working capital.

The offering was conducted on a firm commitment basis. Cathay Securities, Inc. acted as the lead underwriter and Revere Securities LLC acted as co-underwriter for this offering. Sichenzia Ross Ference Carmel LLP served as U.S. securities counsel to the Company for the offering, and Hunter Taubman Fischer & Li LLC served as U.S. securities counsel to the underwriters in connection with the offering.

The shares described above were offered by the Company pursuant to a registration statement on Form F-1, as amended (File Number: 333-282096), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on February 18, 2025. The offering was made only by means of a prospectus, forming a part of the effective registration statement. A copy of the final prospectus relating to the offering may be obtained from Cathay Securities, Inc., 40 Wall Street, Suite 3600, New York, NY 10005, Attention: Shell Li, or by calling +1 855-939-3888, by email request to service@cathaysecurities.com, from Revere Securities LLC, 560 Lexington Ave, 16th Floor, New York, NY 10022, or by calling +1 212-688-2350 or through email request to contact@reveresecurities.com, or by accessing the SEC’s website at www.sec.gov.

Before you invest, you should read the prospectus and other documents the Company has filed or will file with the SEC for more complete information about the Company and the offering. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy any of the Company’s securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation or sale of any of the Company’s securities in any state or jurisdiction in which such offers, solicitations or sales would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. Any offers, solicitations, or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About Basel Medical Group Ltd

Basel Medical is a Singapore-based provider of orthopedic and trauma services, sports medicine and surgery, orthopedic procedures, as well as neurosurgical treatments. Our operations are based in Singapore, with our clinics being at 6 Napier Road, Unit #02-10/11 and Unit #03-07, Gleneagles Medical Centre. Over the last 20 years, our group has forged strong and lasting relationships with a large base of corporations, in particular those in the construction, marine and oil & gas industries, which underpin our robust business model. As an orthopedic service provider in Singapore with a track record of over 20 years, we are well-positioned to ride the wave of growth opportunities in the private healthcare industry in Singapore and across Southeast Asia driven by ageing populations, rising income levels, increasing private insurance coverage, government effort and expenditure on healthcare, growing sports participation rate and Singapore’s position as a premium destination for healthcare services in Asia. Our management and medical practitioner team comprises a roster of orthopedic and neurosurgery specialists, corporate finance and healthcare partnership specialists. Basel Medical Group Ltd serves as the holding company of our group and we conduct our operations through our operating subsidiaries based in Singapore. For more information, please visit the Company’s website: www.baselmedical.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “aim”, “anticipate”, “believe”, “estimate”, “expect”, “going forward”, “intend”, “may”, “plan”, “potential”, “predict”, “propose”, “seek”, “should”, “will”, “would” or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For more information, please contact:

Basel Medical Group Ltd
Investor Relations
Email: admin@baselmedical.com

FAQ

How much did Basel Medical Group (BMGL) raise in total from its IPO including the overallotment?

Basel Medical Group raised total gross proceeds of US$10,143,000 from its IPO, including US$1,323,000 from the overallotment option exercise.

What is the IPO price per share for Basel Medical Group (BMGL)?

Basel Medical Group's IPO price was US$4.00 per share, including the overallotment shares.

When did Basel Medical Group (BMGL) start trading on Nasdaq?

Basel Medical Group began trading on the Nasdaq Capital Market on February 25, 2025, under the ticker symbol BMGL.

How will Basel Medical Group (BMGL) use its IPO proceeds?

BMGL will use proceeds for potential M&A, business expansion (clinics, services, staff, technology), and working capital.

How many additional shares were sold through BMGL's overallotment option?

The underwriters purchased 330,750 additional ordinary shares through the overallotment option.