KUALA LUMPUR (Dec 16): TopVision Eye Specialist Bhd (KL:TOPVISN) ended its first day of listing on the ACE Market on Monday with a 3% rise from its initial public offering (IPO) price of 33 sen.
Following its transfer from the LEAP Market to the ACE Market, shares of the ambulatory eyecare centre opened at 39 sen, 18% or six sen higher than its IPO price.
After the first hour, the stock was trading at around 35 sen. It then slipped in the afternoon session to close at 34 sen, giving the company a market capitalisation of RM105.34 million.
Investors snapped up shares of TopVision during the IPO comprising a public offering of 54.22 million new shares. The public portion was oversubscribed by more than 59 times, while the institutional offering of new shares was also fully taken up. There was no sale of existing shares.
Chief executive officer and executive director Dr Peter Chong Kuok Siong said TopVision's upcoming International Eye Specialist Centre in Petaling Jaya, equipped with the latest technology, will offer a new segment of services that involves more complex eyecare surgeries such as those that may require anaesthesia and are of paediatric nature.
The company is also setting up new retail stores called Top Wellness within its network of ambulatory care centres as revenue drivers. It said the move will help bring down the cost of procurement.
While the company has not set any formal dividend policy, Chong said he is optimistic that the company should be able to reward shareholders with dividends going forward.
“If you look back at our track records from the year 2019 to 2023, every single year we paid out a dividend. This year, no dividend was declared because of the expansion as well as the IPO exercise,” he told reporters at the stock's listing ceremony.
Chong said TopVision will benefit from rising eyecare treatment demand arising from Malaysia’s ageing population, rising comorbidities such as high blood pressure and diabetes, and chronic exposure to long screen times.
The company is also expecting higher revenue from medical tourism, particularly from Indonesian patients.
TopVision raised RM17.89 million from the IPO, of which RM7.9 million will be used for the establishment of its TopVision International Eye Specialist Centre in Petaling Jaya, a tertiary eye ambulatory care centre with subspecialty services like retinal surgery, corneal transplants and paediatric ophthalmology.
It also plans to use RM5 million to expand its ambulatory care centre network with two new centres: one in Tawau, Sabah, representing its first entry into East Malaysia, and another in Kuala Terengganu. By next year, the company will have a total of 14 ambulatory care centres.
The company has guided that its International Eye Specialist Centre and Kuala Terengganu centre will start operations in the second quarter of 2025, while the ambulatory care centre in Sabah is projected to begin its operation in the fourth quarter of 2025.
In the last financial year ended Dec 31, 2023, Top Vision booked a net profit of RM4.82 million on a revenue of RM42.96 million.
Hong Leong Investment Bank is the IPO’s principal adviser, sponsor, sole underwriter and sole bookrunner.
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