31 May 2012
Integrated Healthcare Holdings (IHH) IPO Update: RAM's Chief Economist Yeah Kim Leng says the reason why IHH Bumiputra shares were offered only wealthy Bumiputra is to ensure that only bona fide players were allowed to take part
The conditions set for bumiputra shareholders in the coming initial public offering (IPO) of Integrated Healthcare Holding (IHH) are meant to create genuine players in the capital-intensive healthcare industry, according to a prominent economist.
This would ensure that only bona fide players were allowed to take part in the scheme, said Dr Yeah Kim Leng, group chief economist of RAM Holdings Bhd.
He was responding to criticisms by some bloggers who questioned the wisdom of setting such conditions like RM250,000 cash and net asset of RM3mil for individual bumiputra applicants. For bumiputra companies, the net asset is set at RM10mil.
The listing of IHH in Singapore and Malaysia is expected to be the fourth biggest IPO in the city state's history and Malaysia's second largest this year after the planned listing of Felda Global Ventures Holdings. Bernama