Everyone is staring at the Temasek-backed label and the billion dollar headline, but what caught my attention is what income investors are not getting for the next two years. A private medical roll-up can look like a safe healthcare play on the surface, until you look at the structure underneath. The whole model depends on continuous acquisitions and consultants staying put, not on a steady cash payout.
If a new S$1.0 to S$1.2 billion healthcare IPO is guiding for zero dividends in 2026 and 2027, while a mature peer like Raffles Medical is still paying out around 3 percent, the question for CPF and SRS investors is straightforward: what are you being paid for taking on that extra execution and concentration risk? In this episode I walk through how the roll-up model, the heavy cornerstone allocation, and the zero-yield guidance change the picture for income-focused portfolios. Worth watching before you decide whether this belongs next to your T-bills or stays on the watchlist. Iggy has the forensic read on where this sits against the zone framework in a separate post.
📩 Substack: https://investingiguana.com/p/foundation-healthcare-ipo-a-s1b-giant
📺 YouTube: https://youtu.be/-eWzP126SiA
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