KUALA LUMPUR (Dec 1): Medical device firm LAC Med Bhd, which is seeking over RM55 million in capital from the Main Market, saw its initial public offering (IPO) oversubscribed by 12.64 times.
LAC Med pulled in applications for 272.79 million shares for 20 million shares offered to the public, according to a statement from the issuing house on Monday.
The Bumiputera portion of the tranche was oversubscribed by 10.85 times, while demand from non-Bumiputera exceeded available shares by 14.43 times.
The institutional offering of 30 million shares to institutional and selected investors was fully subscribed through a book-building process, achieving a subscription rate of over 10 times. Shares to Bumiputera investors were also fully subscribed.
Both the institutional and retail prices for the IPO shares have been set to 75 sen.
LAC Med 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.
Its operations have begun in Jakarta, with plans to open branches in Sumatra, Surabaya, and Kalimantan between 2026 and 2027. LAC Med will use the IPO funds to expand in Malaysia and Indonesia.
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 the prospectus released last month.
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.
LAC Med debuts on the Main Market on Dec 10.
RHB Investment Bank is the lead adviser, joint underwriter, and placement agent for the IPO exercise, with Alliance Bank as a joint underwriter.