KUALA LUMPUR (Oct 24): Healthcare services firm Metro Healthcare Bhd (KL:MHCARE) on Thursday unveiled the prospectus for its initial public offering (IPO) to raise RM39.16 million as part of its listing transfer from the LEAP Market to the ACE Market.
The IPO, priced at 25 sen per share, entails the issuance of 156.63 million new shares representing a 16% stake in the company, according to the prospectus. The listing exercise does not involve the sale of any existing shares, the prospectus showed.
The IPO application period closes on Nov 4, with the company’s listing date of Nov 15.
At the offer price of 25 sen, Metro Healthcare would have a market capitalisation of RM244.7 million, valuing the company at about 35 times the average profit after tax for the past three years.
Metro Healthcare, which made its debut on the LEAP Market in 2018, specialises in fertility, obstetrics, and gynaecology services, including pre-fertility consultations such as pre-pregnancy screening.
The company currently operates 16 facilities nationwide, comprising three maternity hospitals, six fertility centres, six clinics, and a diagnostic imaging centre.
Under the public issue, Metro Healthcare is offering 24.47 million new shares to the Malaysian public via balloting and 9.79 million shares to eligible individuals. The remaining 122.36 million shares are earmarked for private placement to select investors and approved Bumiputeras.
For the first half of the financial year ended June 30, 2024, Metro Healthcare reported a 24.65% increase in net profit to RM3.54 million from RM2.84 million a year ago, on the back of a 12.81% rise in revenue to RM24.5 million from RM21.7 million.
More than half of the IPO proceeds will be utilised to expand its obstetrics and gynaecology business, and RM3 million has been set aside to refurbish and upgrade its premises. The rest of the funds raised will cover working capital requirements and listing expenses.
Metro Healthcare is majority-owned by executive vice-chairman Dr Tay Swi Peng @ Tee Swi Peng and his wife, non-executive director Dr Kong Lan Moon.
MIDF Amanah Investment Bank Bhd serves as the principal adviser, sponsor, underwriter, and placement agent for the IPO.