News: Traditional Therapy Clinics seeks up to $15M under IPO

Traditional Therapy Clinics is a well-established business with over 300 owned and franchised clinics in 26 of the 33 administrative divisions in China and compound annual revenue growth rate of 69% over the past 4 years.

In the three years from FY2012 to FY2014, it generated operating cash of $37.3 million, revenue of $55.3 million and net profit of $22.66 million.

The company is now seeking up to $15 million through an initial public offering of 30 million shares priced at $0.50 each.

Proceeds will be used to assist in accelerating its growth plans, lift its image for the purpose of gaining more candidate franchisees as well as improve its operating and governance standards.

Traditional Therapy Clinics operates under the Fuqiao brand, which is highly recognised throughout China and is a government recognised industry leader.

Despite this, the company holds just 1% of the total market share, which was estimated in 2014 at 287 billion yuan (A$61 billion) and forecast to grow to 287 billion yuan by 2017.

It continues to grow the number of franchised clinics and as at 30th April 2015, 13 franchise agreements had been completed while there were 105 potential franchisees in various stages of discussion and negotiation, spread across 21 provinces of China.

The company also intends to grow its owned clinic network. To date, it has identified 21 potential acquisition targets from the franchised clinic base and plans to finalise the acquisition of some of these clinics after the completion of the IPO.

On listing, Traditional Therapy Clinics expects to trade as TTC.

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