SINGAPORE - Shares of cancer treatment company the Singapore Institute of Advanced Medicine Holdings (SAM) closed below its initial public offering (IPO) price at the company’s Catalist debut on Feb 16.

The counter opened at 19.5 cents, down 15.2 per cent from its listing price of 23 cents. It closed down 17.4 per cent at 19 cents, with 6.3 million shares changing hands.

Its offering comprised a public tranche of 4.9 million shares, which were reallocated after a previous offering of 4.4 million shares was nearly 1.4 times subscribed. There were also 109.1 million placement shares.

The overall subscription for the IPO was 1.01 times, based on SAM’s statement on Feb 15.

Through the IPO, the company will raise $26.2 million in gross proceeds, with net proceeds to be used mainly for repaying bank borrowings.

Some 24.8 per cent of the net proceeds will be used for working capital, and 0.8 per cent for the acquisition of new equipment, facilities and upgrading of systems.

Dr Djeng Shih Kien, SAM’s founder and chief executive, said the IPO’s subscription rate was a “vote of confidence for the growth and impact yet to come”.

Founded in 2011, SAM focuses on diagnosing and treating various diseases and health conditions. These include cancer as well as neurodegenerative and cardiovascular diseases.

The company lodged its preliminary prospectus on Nov 24, with the aim of becoming a “one-stop ambulatory treatment centre” for cancer, by grouping all relevant services under one roof.

SAM is a unit of Malaysia-listed Berjaya Group, a conglomerate with multiple business verticals, including consumer marketing, property, food and beverage, and gaming. THE BUSINESS TIMES