KUALA LUMPUR (March 8): PublicInvest Research has derived a fair value of 38 sen for ACE Market-bound Alpha IVF Bhd based on a 26 times price earnings (PE) multiple to its calendar year 2025 (CY2025) forecast earnings per share (EPS) of 1.5 sen.
In an initial public offering (IPO) note on Friday, the research house said the IPO is expected to raise approximately RM116.6 million from the issuance of 364.5 million new shares.
It said besides utilising 14.7% of the proceeds as general working capital, 62.4% of the proceeds will be allocated for geographical expansion while 13.5% will be for expansion and upgrade of existing medical centres, facilities and corporate office.
PublicInvest said Alpha IVF’s competitive strengths include: an established track record, an experienced team, geographic diversity, coordination of medical tourism facilitators, well-equipped specialist centres, and active collaboration and continuous research.
Catalysts
“Key drivers may include: i) declining fertility rate, ii) robust growth for Malaysia's healthcare travel industry, iii) growing awareness of the available treatments of assisted reproductive services, and iv) government incentives to ease the costs of assisted reproductive services.
“Key downside risks, among others, [are]: i) competitive industry, ii) potential changes in demographic trends, iii) potential decline in the healthcare travel industry, iv) potential changes in healthcare regulations, and v) dependency on Zuellig Group, its key supplier,” it said.