Image Plus Consultants Limited, which trades as Apex Radiology, wants to buy new biomedical equipment as well as acquire a property in Kingston to relocate its largest operation, and is looking to stock market investors to fund its ambition.
Apex Radiology, which has been operational since 1996, is selling 20 per cent of its equity in order to raise $496 million in an initial public offering priced at $2 per share.
Its target is at the top end of the $500-million cap placed on share capital for junior market listings.
Companies seeking to list on the Jamaica Stock Exchange, whether its junior arm or the main market, must offer up no less than one-fifth of their shares for subscription in order to qualify for listing. Additionally, they should have no fewer than 100 shareholders.
The Apex offer being brokered by JMMB Securities Limited runs from December 28 to January 11, 2023.
Apex Radiology is in the business of medical imaging, offering services such as X-rays, ultrasounds, MDCT scans, fluoroscopy studies, nuclear medicine, and imaging-guided procedures. A successful IPO would make it the second healthcare company with that speciality to list on the junior market, the first being Elite Diagnostic Limited, which went public in early 2018.
Working with a team of 11 full- and part-time consultant radiologists and over 70 support team members, Apex Radiology currently operates from four locations, three of which are in Kingston – at 2A Molynes Road, Winchester Surgical and Medical Institute at 3a Winchester Road, and 129 Old Hope Road – and another in St Ann at the White River North Commercial Complex in the resort town of Ocho Rios. Both the Molynes Road and Old Hope Road properties are owned by the company. It holds 30 per cent of Winchester MRI Limited.
As of half-year to August 2022, Apex Radiology turned over $554 million in revenue, which annualises to $1.1 billion.
At year ending February 2022, its earnings amounted to $94 million, but its half-year results subsequent to that period have already outperformed those numbers. Over six months to August, Apex reported earnings of $125 million, a 234 per cent gain relative to the year-prior period.
The company says its client base is largely made up of individuals between 40 and 50 years old, who tend to demand more imaging procedures; medical practitioners; and hospitals across Jamaica.
If the IPO succeeds, Apex Radiology said it would acquire a new property in Kingston, and buy new biomedical equipment for additional diagnostic services at its newly relocated Ocho Rios imaging centre.
“With capital raised via this medium, the company will be able to pursue these initiatives simultaneously,” it said in the IPO prospectus.
Apex also intends to expand its footprint to the western end of the island, whether organically or through acquisition.
“Our current plans are to strengthen our market presence in geographic areas where we currently have existing operations, and to expand into neighbouring and other areas where we believe we can compete effectively. We intend to perform extensive due diligence before developing a new facility or acquiring an existing facility,” the company said.
The Winchester Road centre contributes the largest share of revenue. Ultrasound services generate the most volume activity, but CT scans bring in the most revenue, Apex said.
Apex Radiology’s board comprises Chairman and co-founder Dr Karlene McDonnough, who is also a consultant radiologist; CEO Kisha Anderson; co-founder and consultant radiologist Dr L. Ann Robinson-Bridgewater; consultant radiologist Dr Steven Lewis; radiologist Dr Marian Allison; dental surgeon Dr Gordon Bradshaw; Group Compliance Manager and Company Secretary of JMMB Group, Carolyn DaCosta; Dr Jacqueline Leckie; and consultant ophthalmologist Dr Leon Vaughan.