The company Afya Limited, is a healthcare information technology company that has recently gone public. It has been a hot topic of conversation in the business world. Investors, as well as potential investors, are keeping an eye on the performance of the stocks, and those who don't really know what it is for certain are busy looking into the company profile, in an attempt to predict its stability and to discern if its a safe bet or if it bears watching for a while. We also wanted to know more about Afya Limited, so we looked into every aspect of the company's existence to find these 20 things that you probably didn't know about Afya.
1. Afya is a young company
We learned that Afya Limited hasn't been in business for very long at all. The company was founded on May 22, 2016. The founders are Haya JMT Al Ghanim and Vasukumar Nair. It's only had its doors open for business for a little over three years. Within this short period of time, the company has experienced some wonderful growth and expansion.
2. They are a healthcare information technology company
Afya is the company that is responsible for the creation of a patient engagement platform in information technology specifically for use with primary healthcare services. Afya Limited has a website tech stack that is built with a total of 24 technologies currently in use. Some of them include Viewport Meta, SPF and iPhone/Mobile compatible. A brief overview of their services is the rendering of products and services for electronic and digital patient engagements for primary care providers. The software systems that Afya provides allow for patients to take a more active role in scheduling, making payments and other types of transactions that would typically involve the use of clinic staff.
3. They maintain an active social media presence
Anyone who has an interest in learning more about Afya Limited can do so by looking at their company website, or by checking on the social media accounts which have been set up by the company. One of the things that we love about Afya Limited is that they maintain a high level of transparency. They can be found at their website at 222.afyaarabia.com, or on Facebook LinkedIn, or on Twitter. This helps to boost the confidence of potential investors or for healthcare providers who have an interest in the software.
4. Afya recently went public
Although the company is only three years old, the owners and board decided that it was time to take the company public. It is listed on the Nasdaq Global Select stock exchange under the ticker symbol AFYA. They announced the closing of the initial public offering on July 23, 2019. There were a total of 15,805,841 Class A common shares offered during the IPO with a price of $19.00 per share. Out of those available, 13,888,887 were sold. Other shareholders who were selling the stock brought in an extra sale of 1,916,954 shares of Class A common shares and the company has raised an estimated $248.1 million after all fees, discounts, and commissions were tallied. There were also 2,061,631 shares of Class A Common shares which were made available for the underwriters with an option to purchase. Trading commenced on July 19th, 2019.
5. Bookrunners were plenteous
The coordinators in charge of managing the initial public offering for Afya Holdings Ltd. were Bank of America Securities, Inc, UBS Securities LLC, Goldman Sachs & Co. LLC, and Itau BBA USA Securities, Inc. These firms served as global coordinators for the IPO and were joined by Morgan Stanley& Co. LLC, Banco BTG Pactual SA Cayman Branch along with XP Securities as book-runners.
6. The public has access to the prospectus
If you have an active interest in the final prospectus as it relates to the initial public offering, it is available. Bank of America Securities, Inc. maintains the documentation, and they are located in Charlotte, North Carolina. You must contact the Prospectus Department either through email, phone call or by regular mail. Copies are also available through Goldman Sachs & Co, through UBS Securities in New York, Itau BBA Securities in New York, Morgan Stanley Y Co LLC, through Banco GTG Pactual SA Cayman Branch or through CP Securities LLC. Copies of the registration statement are also available through the Securities and Exchange website at www.sec.gov.
7. They are headquartered in South America
Afya has its headquarters in Sao Paulo, and in Nova Lima, Brazil. The organization is one of the leading medical education groups in the entire country. They offer an ecosystem that is set up to empower medical students. The company is an expansive unit from which Afya Holdings Limited has spun-off for the delivery of its healthcare technology components, which are becoming popular throughout the entire world.
8. There are two parts to Afya Limited
Afya Limited operates in two distinct divisions. The first in a comprehensive physician-centric educational system that offers Education Services and Residency Preparatory and Specialization programs. The organization is one of the largest in South America for the preparation and support of medical students through fully accredited physicians. They also offer specialization programs and other services. The second component is the digital content which offers the software created specifically for healthcare organizations.
9. Afya is working for a healthier world
Aside from the financial aspects of Afya Limited, this is a company that is on a mission to improve the quality of healthcare for a healthier world. The educational resources which they offer for physicians allow them to not only pursue their certification as a full-fledged physician, there are also educational opportunities that healthcare professionals may avail themselves throughout their entire career. Afya offers continuing education as well as specialization courses. They're helping physicians to better hone their skills and gain more knowledge and education to better serve their patients. Physicians have access to education and resources for both professional and personal growth.
10. Afya's goal is to bridge the gaps
The medical profession consists of a broad spectrum of practitioners ranging from those who have practiced for decades, and those who are new to the profession. Afya makes a concentrated effort to understand the needs and expectations of the new and upcoming generations of physicians, to best serve their educational needs. There are two other very important goals that Afya embraces. These are to build bridges that will bring together the older and younger generations and bridge the gaps in diverse cultures, traditions, and worldviews found within society.
11. The CEO issued a special statement in support of the IPO
The CEO of Afya issued a special statement after the company went public. This detailed the changes that the company has experienced due to the recent IPO and how it has affected the company overall. The content confirms that Afya is taking a larger step into a new future for the organization. 2019 has been a year that has been filled with growth and significant achievement with the full commitment of team members to continue to advance in the original mission to provide the opportunity for lifelong learning experiences for professionals in the medical and healthcare fields as well as for creating strong value for society and their shareholders.
12. The first semester has shown positive growth
Afya so far has met all of the expectations for a robust growth period. Prior to going public, a strategy was developed to achieve a high level of growth. This includes the expansion of their operations which could only be achieved through the additional funding raised at the IPO. This was confirmed at the end of the first semester since public trading began.
13. Afya has expanded its services through acquisitions of medical seats
One of the focuses of the company is to generate predictable growth as well as profitability and the generation of cash. This is important to investors and those who are considering investing in stock shares available through Afya. In meeting strategic goals, the acquisition of 120 medical school seats was accomplished. This was one of the goals highlighted in the overall plan that has been satisfied.
14. They've reached a new level of service
In addition to the acquisition of 120 medical school seats, Afya has secured the authorization to begin work on a new medical school. This will include yet another 50 medical school seats. This will bring their total network of authorized medical school seats to 1,522, representing a new high in the level of service they're able to provide for students and lifelong learners.
15. Net revenue is looking positive
Afya issued a report which highlighted its net revenues for a six month period ending June 30, 2019. They concluded that there was a total of $323.1 million in revenue brought in. This shows a positive figure with an increase in the figure by 137%, which is good news for investors.
16. There is an increase in the number of undergraduate students
Afya reported that the undergraduate student numbers climbed by the addition of 7,843 students. The total number of students enrolled is now at 12,711. This shows an increase of 16`.1% as the previous number was just 4,868 prior. What this means for the bottom line is that there is also an increase in the amount of revenue that is being generated by the combination of tuition and fees, raising the revenue of Afya Limited for the years.
17. Afya acquired three medical schools
There has been significant growth and expansion within the company with the acquisition of three medical schools, including (FADEP, Novafapi and FASA, Medcel, the medical residency preparatory course, and IPEMED, the medical specialization institution. These three medical schools have generated net revenue of $357.8 million in a 6 month period of time.
18. Afya is becoming more streamlines
We also learned that Afya has made some major gains in their productivity. It seems that the new acquisitions were not burdensome to the corporation but instead brought in a new phase of productivity. This was thanks to careful strategic planning for the implementation of their new overall acquisition goals. The adjusted EBITDA for 6 months showed a 145% increase. This is yet one other milestone that Afya has met in compliance with its overall strategic plan to continue forward in its operations with enhanced performance in services to medical students, in the generation of cash/revenue and in its growth and productivity.
19. Afya is leaving no stone unturned
As we reviewed the latest report generated by Afya, it was so comprehensive that we were impressed with the amount of information that was provided. We saw that there was an anticipation of questions about the forward progress in multiple aspects from the increases in their enrollment counts to the acquisitions made to expand their operations.
20. Afya Limited is a company to keep your eye on
If you're considering a new company to add to your investment portfolio, Afya Limited is certainly one to keep your eye on. They've made impressive progress in their growth and expansion without overburdening the organization's financial capacity to do so. While any investment in the stock market is a risk, this newcomer to the world of public trading has all of the earmarks of continued growth, with transparency for shareholders and all other stakeholders. So far, there has been a comprehensive accounting and there are several avenues to choose from to get a more complete picture of the company, as well as following the trends in shares. Afya Limited currently just serves Brazil, but we're hoping to see their model replicated in other parts of the world.
Written by Allen Lee
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