KUALA LUMPUR (June 5): Medical device and services provider LAC Med Bhd has filed its draft prospectus for an initial public offering (IPO) on the Main Market with the Securities Commission Malaysia.

According to the document published on Thursday, its IPO will involve up to 124.2 million shares, comprising a public issue of up to 74.2 million new shares (representing 18.5% of its enlarged share base) and an offer for sale of up to 50 million existing shares (representing 12.5% of its enlarged share base), which collectively offers investors a 31% stake in the company.

Of the shares, 100 million will be allocated for institutional investors, while the remaining 24.2 million will be offered under the retail tranche.

Under the institutional portion, 50 million shares will be offered to institutional or selected investors, and 50 million to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

Of the 24.2 million shares to be offered to the Malaysian public, 10 million shares each are set aside for Bumiputera and non-Bumiputera investors, while 4.2 million shares are reserved for eligible persons.

LAC Med specialises in the supply and integration of medical devices. The IPO proceeds will be used to fund capital expenditure, including the establishment of a new head office and warehouse, the expansion of its Indonesian business, and the creation of new service segments such as Equipment-as-a-Service (EaaS) and Medical Equipment Asset Management Services (MEAMS).

The remaining proceeds will be used for the repayment of bank borrowings and working capital.

"We aim to expand our software and systems for the healthcare facilities segment by introducing new solutions," the group said in the draft prospectus. "This approach will enhance asset availability, improve equipment reliability, minimise downtime, and optimise utilisation."

As part of its regional expansion, LAC Med plans to establish branch offices in Sumatra, Surabaya, and Kalimantan between 2026 and 2027, tapping into Indonesia’s growing medical sector, government-led healthcare initiatives, and increasing demand driven by population growth and ageing demographics.

LAC Med’s substantial shareholders include group chief executive officer Liew Yoon Poh with a 29.4% stake, his brother and non-executive chairman Liew Yoon Kit, Giam Teck Eng, and Chan Yue Mun, each holding 22.8%.

Yoon Poh, Yoon Kit and Giam are the ones who are putting up portions of their shares in the offer for sale, which will reduce their shareholdings to 18.9%, 14.9% and 14.9%, respectively.

For the financial year ended Dec 31, 2024 (FY2024), profit after tax dipped slightly by 1.7% to RM20.7 million, compared to RM21.1 million in FY2023. Despite the slight drop in profit, revenue rose nearly 22% to RM183.2 million, from RM150.3 million in the previous year.

RHB Investment Bank Bhd is the principal adviser for this IPO, as well as its sole underwriter and sole placement agent.