KUALA LUMPUR (Sept 27): Healthcare service provider Metro Healthcare Bhd (KL:MHCARE) has signed an underwriting agreement with MIDF Amanah Investment Bank Bhd for its listing transfer from the LEAP Market to the ACE Market of Bursa Malaysia.
Under the agreement, MIDF will underwrite a total of 34.26 million shares to be offered to the Malaysian public and via pink form applications, Metro Healthcare said in a statement.
"Our transition from the LEAP Market to the ACE Market marks the next phase of our growth, as we aim to provide greater access to high-quality healthcare, particularly in women’s and family health, areas in which we see strong long-term growth prospects,” said Metro Healthcare managing director Lim Wai Khong.
The move will increase the company's share liquidity, raise its profile and attract strategic partners, Lim noted.
"This transition also gives us a larger fundraising platform, enabling us to access the capital required to support our expansion plans and invest in strategic initiatives that will accelerate our future growth," he added.
Metro Healthcare currently operates three maternity hospitals, six fertility centres and six clinics across the country.
Metro Healthcare was listed on the LEAP Market in 2018. For the first half of the financial year ended June 30, 2024, the company posted a net profit of RM3.54 million on revenue of RM24.5 million.
The proposed IPO involves the issuance of 156.63 million new shares, representing 16% of the group’s enlarged share capital of 978.91 million shares, at a price to be determined later.
Of the new shares, 3.5% of the enlarged share capital will be open for application to the Malaysian public and via pink forms, while 12.5% will be allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Proceeds from the IPO will be used for the expansion of Metro Healthcare’s existing obstetrics and gynaecology business, refurbishment and upgrading of business premises, meeting working capital requirements and defraying listing expenses, according to the company's draft prospectus.
Metro Healthcare is majority-owned by executive vice chairman Dr Tay Swi Peng @ Tee Swi Peng and his wife Dr Kong Lan Moon, who is a non-executive director.