"For the past 26 years Praram 9 Hospital has been providing trusted medical service and tertiary care in Thailand with commitment to service quality, safety and customers' value," said Dr. Satian Pooprasert Chief Executive Officer of Praram 9 Hospital Plc. "In the past several years, we have seen a clear trend where demand for medical services has been growing remarkably" he added.
"One of the major factors contributing to this trend has been an aging society," Dr. Satian went on to explain. "Thailand's National Economic and Social Development Board, or NESDB, has forecast that by 2020 the number of people aged over 60 years old will account for a fifth, or 19.1%, of the total population. By 2040 the population of elderly people will account for a third, or 32.1%, of the country's population."
Also driving the growth in medical services in the country has been the fact that "Thailand is very famous on the international market for excellent medical services," Dr. Satian noted. "Coupled by the government's policy to establish Thailand as the medical hub of the region, Thailand's medical and healthcare industry has been constantly expanding."
Praram 9 Hospital, which is located on Rama IX Road in Bangkok, has been among the country's primary medical institutions. "Looking at ourselves, Praram 9 Hospital has many strengths that will help us gain advantage over this trend," Dr. Satian explained.
"We have a great team of medical specialists and staff members with high experience to treat complicated diseases. We have modern medical equipment and technology, offer great value for money, and provide warm and friendly services and patient care. All of these have contributed to high customer loyalty."
In addition, he said, "Our strategic location in the new central business district (new CBD), such as Huai Khwang and surrounding area, which is growing fast due to an increasing urban community and the number of office buildings, and international standard certifications such as Joint Commission International (JCI) of the US, also contribute to our success and provide us with strong confidence in expanding and strengthening our business with efficiency."
To further enhance its strengths, Praram 9 Hospital has introduced key strategies aiming at boosting its business growth and expanding its customer base. The strategies are as follows:
Three methods of customer base expansion including
Growing the network of partners and boosting medical cooperation to increase access to new groups of customers. At present, Praram 9 Hospital partners with nine hospitals in major cities across Thailand for the transfer of kidney transplant patients from partnering hospitals to Praram 9 Hospital.
Expand its B2B client base such as insurance companies and companies, located in the area, using proactive marketing strategy.
Increase international customer proportion, to 15% within 2022, through cooperation with overseas partners, medical tourist and expatriates in the area; which includes patients from Myanmar, Cambodia, China and Japan. In addition, it has more than 22 special medical institutes and centers that better serve different needs of patients.
Constructing new buildings and renovating existing building. The hospital will invest
more than 2 billion baht into the construction of a new 16-story building. With a concept created by the firm Co-Healthy Space, the new building is designed to optimize space and services, supported by advanced medical technology, to better address current trends in consumer lifestyles. The new building will be completed and open for services in the final quarter of 2019. At the same time, the hospital will renovate its existing building in order to increase its patient-handling capacity, especially for patients with complicated diseases and those who need intensive care. Praram 9 Hospital expects to nearly double the number of registered beds from the current 166 to 313 by 2023.
Increased space will also enable the hospital to expand the scope of services to include health promotion and wellness. This will better address the changing needs and lifestyles of modern consumers, both health-conscious people who seek to stay healthy and those already requiring care for health problems. Some recent developed services that have already been introduced are a hair center, skin and plastic surgery services, a pain management and rehabilitation center, a healthcare center that offers comprehensive check-up for customers of all ages.
Integrating technology into services and overall operations to support digital hospital transformations. Praram 9 Hospital has implemented advanced information technology on its premises so as to increase the quality and operational efficiency of its services, boost care convenience and patient safety, and enhance patients' satisfaction through new experiences. The hospital is developing "digital health" technologies for improved diagnosis and follow-up after treatment, such as the Praram 9 Patient Mobile Application, Command Center, Medical Wearable Devices and telemedicine.
Introducing a proactive marketing approach and strengthening the corporate image. Praram 9 Hospital aims to become a Professional Healthcare Community, a trusted modern healthcare center in the heart of the city, through seamlessly providing extensive holistic healthcare and medical services. Proactive communications and marketing strategies will be adopted to increase public awareness of its offerings, strengths and new positioning, and to encourage customers' participation in the hospital's activities. This intensive outreach through a new communication and marketing plan will also serve to boost loyalty among employees and staff members.
Praram 9 Hospital has been performing well financially. Its revenues in 2015, 2016 and 2017, were 1,996.4 million baht, 2,272.5 million baht and 2,455.2 million baht, respectively. This represents CAGR of 10.9% per annum. In the first half of 2018, the hospital's total revenue was 1,295.3 million baht, a 14.6% increase from the same period last year.
CAGR of net profit for the past three-year period has been 17.7% per year (189.3 million baht, 259.8 million baht and 262.3 million baht in 2015, 2016 and 2017, respectively) with adjusted net profit for the first half of 2018 at 124.8 million baht.
Praram 9 Hospital aims to increase the proportion of foreign patients based on a rising trend. Most have come from Myanmar, China, Japan and Cambodia. To increase access to the hospital services among this customer group, Praram 9 Hospital has established the "Cultural Support" Team and built an international network of partners in Myanmar, China and Cambodia, as well as other countries to increase convenience for patient transfer into Thailand.
Dr. Satian added, "We are confident that we will be able to boost growth rate with this competitive strategy and more resources, such as more beds, and enhanced expertise in treatment and care for patients with complicated diseases which has accounted for approximately 40% of hospital operating revenue in the past three years. In addition, new technology we adopt and the wider cooperation network we have will enable us to expand our customer base while maintaining quality and value for money."
Mr. Anuwat Ruamsuke Managing Director, Head of Capital Markets Department of Phatra Securities Public Company Limited said "Through this IPO, we are making a significant step towards being the Professional Healthcare Community trusted by Thai and international customers". "This plan will also increase our operational efficiency and achieve sustainable growth. At the same time, we are offering an opportunity for investors and the general public to growth with us and entering into a healthy society together in the future."
Funds raised from the IPO will be used for the construction of a new building, renovation of existing building, and construction of facilities for employees and staff members, as well as capital for hospital operations, and investment to support other expansion plans (if any) and repayment of loans (if any).
"Under this IPO, Praram 9 Hospital will issue no more than 180,000,000 shares with par value of Baht 1.0, including 167,500,000 new ordinary shares for the general public and 12,500,000 shares for the directors and/or executives who are the Company's founders, and no more than 20,000,000 shares for a greenshoe option. Praram 9 Hospital which will be listed under "PR9" ticker is expected to open for subscription during 16 – 19 October 2018," Mr. Anuwat Ruamsuke added. For more information, please visit http://investor.praram9.com/th