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KUALA LUMPUR (Nov 14): Medical device and solutions company LAC Med Bhd has launched a RM78.15 million initial public offering (IPO) on Bursa Malaysia’s Main Market at 75 sen a share.
The IPO will raise RM55.65 million for the company and RM22.5 million for existing shareholders, including its group chief executive officer Liew Yoon Poh, his brother and non-executive chairman Liew Yoon Kit, and substantial shareholder Giam Teck Eng, according to its prospectus released on Friday.
LAC Med will use the funds to expand in Malaysia and Indonesia.
At the prospectus launch, Yoon Poh said the company plans to grow through its new Medical Equipment Asset Management Services (MEAMS) division, offering an asset management solution to optimise equipment and generate recurring revenue. It is also launching an Equipment-as-a-Service (EaaS) rental model to reduce upfront costs for hospitals.
LAC Med operations have begun in Jakarta, with plans to open branches in Sumatra, Surabaya, and Kalimantan between 2026 and 2027.
“We are hiring local Indonesian talent to grow the business. The aspiration is to replicate the success we have built in Malaysia over the past 20 years and achieve a similar scale in Indonesia,” he said.
“Our north star is clear: to build in Indonesia what we have successfully achieved in Malaysia. With more solutions in our portfolio, we aim to deepen engagement with existing clients while expanding our reach,” Yoon Poh added.
Use of IPO proceeds:
- RM8 million (14.4%) will fund the new EaaS and MEAMS business segment.
- RM8 million (14.4%) will support regional expansion in Indonesia.
- RM12 million (21.6%) will be allocated to a new head office with expanded storage and a dedicated showroom.
- The remainder will go towards loan repayments, working capital, and listing expenses.
On profitability, Yoon Poh acknowledged that net profit has stayed flat despite higher revenue due to heavy investment in internal capacity, including expanding from two to 11 suppliers to support future growth.
Founded in 2003, LAC Med distributes and integrates medical devices from 11 global brands in Malaysia and Indonesia. Its products include radiography, ultrasound, consumables, and software solutions. Long-term partners include Samsung (since 2013) and Philips (since 2017), with new distributorships added since 2023 for brands like Stryker, LG, Abbott, Bayer, and others, expanding its portfolio.
The group has installed more than 2,500 units of medical equipment and supports over 300 active clients across Malaysia’s healthcare sector, including private and public hospitals, university medical centres, health offices, suppliers, and concessionaires.
“Their comprehensive and integrated service offerings in healthcare solutions position them at the forefront of the evolving healthcare landscape with a clear vision to enhance patient care and operational efficiency for healthcare providers,” said RHB Investment Bank CEO Kevin Davies.
Post-listing, the combined stake of Yoon Poh, Yoon Kit, and Giam will drop from 75% to 53.7%. Giam’s uncle, Chan Yue Mun, will see his stake fall from 25% to 18.6%, as he is not selling any shares.
Upon listing, LAC Med will have a market capitalisation of RM300 million.
The IPO values the company at a price-to-earnings multiple of 14.7 based on the financial year ended Dec 31, 2024 net profit of RM20.4 million. The company has adopted a 30% dividend policy.
“LAC Med’s strong fundamentals and focus on innovation in healthcare technology reflect its potential to deliver sustainable growth and long-term value for investors,” said Alliance Islamic Bank CEO Rizal IL-Ehzan Fadil Azim.
Applications for the IPO will close on Nov 25, and listing has been scheduled for Dec 10.
RHB Investment Bank is the lead adviser, joint underwriter, and placement agent, with Alliance Bank as joint underwriter.
Note: This article has been updated.