SHARES of cancer-treatment provider Singapore Institute of Advanced Medicine : 9G2 0% (SAM) closed below their initial public offering (IPO) price at the company’s Catalist debut on Friday (Feb 16).

The counter opened at S$0.195, down 15.2 per cent from its offer price of S$0.23. By the closing bell, the stock fell further to end at S$0.19, after 6.3 million shares worth S$1.2 million changed 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 Thursday.

Through the IPO, the company will raise S$26.2 million in gross proceeds, with net proceeds of S$21.7 million. Over half of the net proceeds will be used for repaying bank borrowings, while 24.8 per cent 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”.

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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.