KUALA LUMPUR (May 26): PMCK Bhd, which mainly operates a medical centre in Kedah, has started accepting applications from investors for its initial public offering (IPO) to raise up to RM67 million for its ACE Market listing.
The IPO, priced at 22 sen a piece, will raise about RM60 million for PMCK and another RM7 million for the selling shareholders managing director Datuk Lee Gaik Cheng and deputy executive chairman Datuk Lim Kim Huat, according to its prospectus.
Application for the IPO will close on June 25, with the company scheduled for listing on July 9.
PMCK operates the Putra Medical Centre in Alor Setar, offering specialist consultant services, emergency care and clinical support with 40 consultants across 17 specialisations.
The company is now in the midst of a mixed development dubbed PMC Kulim consisting of a 12-storey private medical centre, food court and hotel that will prioritise patients’ family members on a site measuring over 141,000 square feet in Kulim, Kedah.
The total cost for the construction is estimated at RM193 million.
"With the launch of PMC Kulim, supported by our IPO proceeds, we are expanding our reach and capacity to meet rising healthcare demands,” Lee said.
PMCK has earmarked RM50 million of the proceeds to repay bank borrowings to be drawn for expansion and another RM5.3 million to buy equipment for PMC Kulim. The rest will go towards defraying estimated listing expenses.
At the IPO price of 22 sen, PMCK is expected to have a market capitalisation of RM239.93 million upon listing, valuing the company at 15.94 times its earnings for the financial year ended April 30, 2024 (FY2024). PMCK’s net profit surged 40% to RM15.05 million in FY2024.
Lim is currently PMCK's largest shareholder with a 77.2% stake while Lee directly owns 19.9% of the company. Together, they hold 77.2% through a private vehicle Lim Kim Huat Holdings Sdn Bhd.
The crown princess of Kedah Che Puan Muda Zaheeda Mohamad Ariff serves as the company’s independent non-executive chairperson and will hold a direct stake of 0.02% in PMCK after listing.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO, while Public Investment Bank Bhd and Kenanga Investment Bank Bhd are the joint placement agents.