KUALA LUMPUR (March 1): Fertility care company Alpha IVF Group Bhd on Friday began taking orders from investors for its initial public offering (IPO) to raise up to RM466.5 million.
The IPO, priced at 32 sen per share, is backed by eight of the so-called cornerstone investors, including AHAM Asset Management, Eastspring Investments Bhd, Lion Global Investors Ltd and Value Partners Hong Kong Ltd, according to the prospectus launched.
Cornerstone investors typically agree to buy a large chunk of IPO shares ahead of the IPO, and their presence helps in boosting the company's appeal to other potential investors.
The IPO comprises 364.5 million new shares and 1.09 billion existing shares. The institutional tranche, including for Bumiputera investors, was allocated 1.24 billion shares, while the retail portion for a select group of people and the public involves 218.7 million shares.
Alpha IVF’s eight cornerstone investors have agreed collectively to acquire 408 million IPO shares at the IPO price as part of the institutional offering.
The offering will close on March 8, and the listing is scheduled for March 22.
Out of RM116.65 million gross proceeds to be raised from the new share sale, 62% are earmarked to set up new medical centres, satellite clinics, and sales representative offices. Alpha IVF also plans to spend 13% on expansion and upgrade of existing facilities.
The remainder will be used for research and development, working capital, and general corporate purposes, and to defray the listing expenses.
The sale of existing shares, meanwhile, will raise about RM349.9 million, which will accrue entirely to the current shareholders of Alpha IVF, including group managing director Datuk Dr Colin Lee Soon Soo.
“We aim to establish three full-fledged fertility centres in Malaysia” by the financial year ending May 31, 2026, said Lee.
The company also plans to expand internationally by setting up additional specialists centres and four satellite clinics in Indonesia, as well as another specialist centre elsewhere in Southeast Asia, and two sales representative offices in China, he added.
Alpha IVF aims to distribute at least 60% of annual net profit as dividends.
AmInvestment Bank Bhd is the principal adviser, sponsor, lead bookrunner, and sole underwriter for the IPO.