KUALA LUMPUR (July 11): Aesthetic medical services provider DC Healthcare Holdings Bhd, which is slated to list on the ACE Market of Bursa Malaysia next Monday (July 17), has posted a net profit of RM2.4 million for the first quarter ended March 31, 2023 (1QFY2023).

Revenue stood at RM16.8 million, with 88.8% of it coming from aesthetic services, the company said in its quarterly financial report filed with the exchange on Tuesday (July 11).

As this is the first quarterly report announced by the company, no comparative figures for the preceding year are available.

DC Healthcare said it will continue to focus on its core business, in light of the growth in the aesthetic medicine market, by expanding its network of clinics through the setting up of new aesthetic medical clinics in the southern and northern regions of Peninsular Malaysia.

“In order to support the expansion, we intend to strengthen our medical doctors, clinic consultants and other support staff by attracting and recruiting highly skilled and experienced personnel,” the company said.

DC Healthcare added that it will also upgrade the technology of its medical equipment to enhance services.

The company has priced its initial public offering (IPO) at 25 sen per share, with the aim of raising RM49.81 million for working capital and repayment of borrowings.

At 25 sen per share, DC Healthcare is valued at 26.04 times price earnings, based on its profit after tax of RM9.56 million for the year ended Dec 31, 2022 (FY2022).

Its share capital will be enlarged to 996.3 million shares under its flotation exercise, and it is expected to have a market capitalisation of RM249.08 million upon listing.

For the 49.82 million IPO shares offered to the public, a total of 17,614 applications for 3.01 billion shares worth RM752.92 million were received, representing an oversubscription of 59.46 times.

Mercury Securities Sdn Bhd and Apex Securities Bhd have issued a “subscribe” recommendation on DC Healthcare, with a fair value of 60 sen and 57 sen respectively.

Public Investment Bank Bhd, meanwhile, assigned a fair value of 37 sen to DC Healthcare, representing a price-earnings multiple of 16 times its financial year ending Dec 31, 2024 (FY2024)’s earnings per share of 2.3 sen.