KUALA LUMPUR (March 12): The public tranche of Alpha IVF Group Bhd's initial public offering (IPO) has been oversubscribed by 1.73 times, with the group set to be listed on the ACE Market of Bursa Malaysia on March 22.
Alpha IVF received a total of 6,894 applications for 530.1 million shares, with a total value of RM169.6 million, versus 194.4 million shares that were made available for application by the Malaysian public, according to a statement by the fertility care specialist.
The institutional offering, comprising 1.24 billion shares made available to institutional and selected investors including Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), was oversubscribed by 2.14 times.
The IPO managed to secure eight cornerstone investors which subscribed to 64.6% of the institutional offering excluding the Miti tranche. The eight cornerstone investors are abrdn Malaysia Sdn Bhd, AHAM Asset Management Bhd, AIA Bhd, Eastspring Investments Bhd, Hong Leong Asset Management Bhd, Kenanga Investors Bhd, Lion Global Investors Ltd, and Value Partners Hong Kong Ltd.
"The oversubscription of our IPO by the institutional investors and Malaysian public signifies the confidence of the investing community in our expansion plans and prospects for growth," said Alpha IVF group managing director Datuk Dr Colin Lee Soon Soo.
"With their belief in our vision and mission, we stand ready to embark on this next chapter of growth, furthering our commitment to advancing in-vitro fertilisation (IVF) and fulfilling dreams of parenthood," he added.
Alpha IVF’s IPO, which started receiving orders from investors from March 1 until it was closed on March 8, consists of a public issue of 364.5 million new ordinary shares along with an offer-for-sale of 1.09 billion existing shares, at an issue price of 32 sen per ordinary share.
The IPO is raising total funds of RM466.6 million, with Alpha IVF receiving RM116.6 million and the offerors receiving the remaining RM349.9 million.
Out of the total proceeds of RM116.6 million, Alpha IVF said RM72.8 million will be utilised to develop new IVF centres, satellite clinics, and sales representative offices as part of their domestic and global expansion strategy.
A further RM15.7 million will be allocated for expansion and upgrade of existing specialist centres, facilities, and corporate office; RM2.2 million for research and development (R&D); and the remaining RM25.9 million will be used for general working capital, general corporate purposes, and defraying of listing expenses.
The group has also committed to reward its shareholders by adopting a dividend policy that aims to distribute at least 60% of its annual net profit for shareholders to participate in the company’s growth.
AmInvestment Bank Bhd is the principal adviser, sponsor, lead bookrunner, and sole underwriter for the IPO.