Basel Medical Group Ltd Prices US$8,820,000 Initial Public Offering

Rhea-AI Summary

Basel Medical Group (Nasdaq: BMGL), a Singapore-based clinical provider of orthopedic, trauma, sports medicine, and neurosurgical services, has announced the pricing of its Initial Public Offering (IPO) of 2,205,000 ordinary shares at US$4.00 per share.

The company expects to raise US$8.82 million in gross proceeds and has granted underwriters a 45-day over-allotment option for an additional 330,750 shares. Trading will commence on the Nasdaq Capital Market on February 25, 2025, under 'BMGL'. Additionally, 2,000,000 existing shares are registered for resale by certain shareholders.

The net proceeds will fund potential mergers and acquisitions, business expansion (including clinic space, auxiliary services, staff hiring, technology upgrades), and working capital. Cathay Securities leads the firm commitment offering, with Revere Securities as co-underwriter, expected to close on February 26, 2025.

Positive

• IPO raises US$8.82M in fresh capital
• Nasdaq Capital Market listing provides enhanced visibility
• 45-day over-allotment option could increase proceeds
• Firm commitment underwriting reduces offering risk
• Clear growth strategy through M&A and business expansion

Negative

• Significant shareholder dilution with 2.2M new shares
• Additional 2M shares registered for resale may pressure stock price
• Potential further dilution from over-allotment option of 330,750 shares

Insights

Financial Analyst

Basel Medical Group's $8.82 million IPO represents an unusually small public offering for a Nasdaq-listed company, suggesting either early-stage operations or scale. At $4 per share, this specialized orthopedic and neurosurgical provider enters the public markets with a modest valuation that may constrain its stated growth ambitions.

The concurrent registration for resale of 2 million existing shares by selling shareholders—nearly matching the 2.2 million new shares being issued—raises potential concerns. This substantial insider selling alongside the IPO could signal confidence in near-term appreciation potential from current shareholders.

The company's stated use of proceeds spans multiple priorities including M&A, clinic expansion, service enhancement, staffing, technology, and working capital. However, the capital raise may force difficult prioritization decisions. The emphasis on acquisitions suggests BMGL is positioning to capitalize on consolidation trends in specialized medical services, though execution risks are significant given its modest financial resources.

For investors, this Singapore-based company presents unique considerations including different regulatory oversight compared to U.S.-based healthcare providers. Small healthcare IPOs historically show mixed post-offering performance, often requiring several quarters to establish operational momentum and market confidence.

The firm commitment underwriting structure provides some validation, though the selection of smaller investment banks (Cathay Securities and Revere Securities) rather than bulge-bracket firms aligns with the offering's size and potentially narrower investor appeal.

Singapore, Feb. 25, 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 pricing of its initial public offering of 2,205,000 ordinary shares at a public offering price of US$4.00 per share. The shares are expected to commence trading on the Nasdaq Capital Market on February 25, 2025, under the ticker symbol “BMGL”. Concurrently, the Company has registered for resale up to 2,000,000 existing ordinary shares by certain selling shareholders. The Company will not receive any proceeds from the sale of those shares by the selling shareholders.

The Company expects to receive aggregate gross proceeds of US$8,820,000 from this offering, before deducting underwriting discounts and offering expenses payable by the Company. In addition, the Company has granted the underwriters a 45-day over-allotment option to purchase up to an additional 330,750 ordinary shares at the public offering price, less the underwriting discount.

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 is expected to close on February 26, 2025, subject to the satisfaction of customary closing conditions.

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

The shares described above are 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 is being 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, when available, 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, including, but not limited to, the Company’s offering. 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, including the expectation that the offering will be successfully completed. 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

What is the IPO price and size for Basel Medical Group (BMGL)?

Basel Medical Group's IPO consists of 2,205,000 ordinary shares priced at US$4.00 per share, totaling US$8.82 million in gross proceeds.

When will BMGL stock start trading on Nasdaq?

BMGL shares will commence trading on the Nasdaq Capital Market on February 25, 2025.

How will Basel Medical Group use the IPO proceeds?

The proceeds will fund mergers and acquisitions, business expansion (clinic space, services, staffing, technology), and working capital.

What is the over-allotment option for BMGL's IPO?

Underwriters have a 45-day option to purchase up to 330,750 additional shares at the IPO price.

How many existing BMGL shares are being registered for resale?

2,000,000 existing ordinary shares are registered for resale by certain selling shareholders.