KUALA LUMPUR (Sept 15): Fertility care specialist Alpha IVF Group Bhd is planning an initial public offering (IPO) on the ACE Market on Bursa Malaysia to fund new medical centres, as well as expand and upgrade its existing ones.
According to its draft prospectus on Bursa Malaysia, the exercise will involve a public issue of 364.50 million new shares, or 7.5% based on the enlarged share total of 4.86 billion after the IPO, and an offer for sale of 1.09 billion shares, representing 22.5% of its enlarged share total.
Under its public issuance, 121.50 million shares will be made available via retail offering, of which 48.60 million shares each will be offered to Bumiputera and non-Bumiputera members of the Malaysian public via balloting, while 24.30 million shares will be allocated for eligible persons.
Meanwhile, 243 million shares will be available to institutional investors.
Of the 1.09 billion offered for sale, 607.50 million shares are allocated for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti). The remaining 486 million shares are allocated for its institutional and selected investors.
As a fertility care specialist, the group focuses on the provision of assisted reproductive services in Malaysia and Singapore, including intracytoplasmic sperm injection (ICSI) and intrauterine insemination (IUI).
It also provides various diagnostics, testing and screening procedures and cryopreservation of eggs, sperms and embryos to support its assisted reproductive services.
It has two specialist centres in Malaysia and one in Singapore that provides in-vitro fertilisation (IVF) services, with customers from countries including Malaysia, Singapore, Indonesia and China.
The group also plans to use its proceeds on research & development, general working capital and corporate purposes, as well as defraying listing expenses.
The group made a net profit of RM43.40 million in the financial period ended February 2023 (FPE2023), with a revenue of RM99.56 million.
In its financial year ended May 2022 (FYE2022), it made a net profit of RM22.98 million and a revenue of RM91.09 million, higher than it made in FYE2021 with RM2.31 million and a revenue of RM62.06 million. In FYE2020, its net profit was RM3.46 million, when its revenue was RM68.96 million.
Its profit after tax (PAT) margin stood at 43.59% in FPE2023, while in FYE2022, its PAT margin was at 25.23%. It was higher than 3.71% (FYE2021) and 5.02% (FYE2020).
The group is 61.68% controlled by its executive director and group managing director Datuk Dr Colin Lee Soon Soo, who will trim down his stake to 43.16% after the IPO.
Other stakeholders include executive director Dr Ng Peng Wah, and Alpha Singapore director of operations Lee Soon Ai, who will pare down their shares from 12.74% and 11.89% respectively, to 8.91% and 8.32%.
ACE Specialist Sdn Bhd is also a substantial shareholder in the group with 13.08% pre-IPO, which will trim its shares to 9.15%.
On its dividend policy, the board intends to recommend and distribute a dividend of at least 60.00% of its annual audited PAT attributable to the shareholders of the group.
“This will allow our shareholders to participate in our group’s profit. Any dividend declared will be subject to the approval of our board,” read its prospectus.
“Notwithstanding our intentions above, as a holding company, our income, and therefore our ability to pay dividends, is dependent upon the dividends and other distributions we receive from our subsidiaries.”
AmInvestment Bank Bhd is the principal adviser, sponsor, lead placement agent, joint placement agent, managing underwriter and joint underwriter of the IPO.