KUALA LUMPUR (Nov 15): Shares of Metro Healthcare Bhd (KL:METRO) edged higher on Friday in its trading debut on the ACE Market, after the fertility and maternity specialist raised RM39.16 million from its initial public offering (IPO).

Metro opened at 25.5 sen versus its IPO price of 25 sen a piece. The stock was trading at 25 sen at 9.15am, after more than 34 million shares changed hands. At the last-traded price, the company had a market capitalisation of RM244 million.

The public portion of its IPO was oversubscribed by nearly 39 times ahead of the listing. Shares set aside for eligible persons were also fully subscribed and a private placement to select investors were also taken up. The IPO did not involve the sale of any existing shares.

Metro Healthcare, first listed 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.

The group earmarked more than half of the IPO proceeds to be utilised for expanding 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.

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