KUALA LUMPUR (Dec 8): DC Healthcare Holdings Bhd, an aesthetic medical services provider specialising in non-invasive and minimally invasive procedures, is seeking an initial public offering (IPO) on the ACE Market of Bursa Malaysia to raise funds for newer aesthetics clinics and equipment.

According to the prospectus exposure on Bursa on Thursday (Dec 8), the group also hopes to gain recognition through the listing status, while retaining and attracting new skilled employees including LCP-certified aesthetic physicians from the industry.

Other utilisation of the proceeds including repayment of borrowings, working capital and estimated listing expenses, it added.

In its prospectus, the group's public issue would be 199.26 million new ordinary shares, representing 20% of its enlarged share capital. From them, 49.815 million would be made available for application by the Malaysian public.

From the issued shares for the Malaysian public, 24.9 million representing 2.5% of the company's enlarged share capital would be made for public investors, while 24.9 million (2.5% enlarged share capital) would be made available for Bumiputera public investors.

Additionally, 29.889 million shares (3% enlarged share capital) would be made available for eligible directors and employees, followed by 119.556 million or 12% enlarged share capital would be made by way of private placement for selected investors.

The enlarged number of shares upon listing would be 996.3 million, from 797.04 million share capital as of the date of the prospectus.

Meanwhile, the 99.63 million existing shares or 10% of its enlarged share capital would be offered for sale by way of private placement for selected investors.

The existing shares offered would be made by two selling shareholders, with Dr Chong Tze Sheng offering 59.78 million and another 39.85 million by Dr Lai Ngan Chee.

After the IPO, Chong's shareholding of the group would be trimmed to 46.47 million shares from 106.25 million. His percentage of shareholding in the group would be reduced from 13.33% to 4.67%.

Lai's shareholding percentage post-IPO would be decreased to 2.95% or 29.4 million shares, from 8.69% (69.24 million shares).

As of the last practical date prior to the registration of the prospectus with the Securities Commission Malaysia, the group had a total of 10 aesthetics medical clinics in the central region and the southern region. The group intends to open eight new aesthetics medical clinics in the southern region and the northern region within 18 months from the date of listing.

The group's net profit for the financial year 2021 (FY2020) was RM4.6 million with a revenue of RM25.48 million. This compared with net profit of RM1.9 million for FY2020 and RM1.17 million for FY2019 while revenue stood at RM14.45 million in FY2020 and RM12.21 in FY2019.

M&A Securities Sdn Bhd is the underwriter for the IPO.