KUALA LUMPUR (Oct 19): LYC Healthcare Bhd (KL) faces suspension and delisting from Bursa Malaysia after failing to secure a sponsor for its proposed Guidance Note 3 (GN3) regularisation plan following the termination of UOB Kay Hian (M) Sdn Bhd’s appointment last Friday.
In a bourse filing on Monday, the confinement centre and aesthetic clinic operator had received a termination letter dated Oct 16 from UOB Kay Hian (M) Sdn Bhd (UOBKH). No reason was given for the termination.
Following this, trading in LYC’s securities will be suspended from Oct 27, with the company set to be delisted on Oct 29 unless it appeals against the delisting by Oct 26.
If LYC submits an appeal in time, the delisting will be deferred pending Bursa Securities’ decision. However, the Oct 27 suspension will proceed.
Upon delisting, LYC will continue to operate as an unlisted entity and may proceed with its business operations and corporate restructuring. Shareholders will retain their shares, although these will no longer be quoted or traded on Bursa Malaysia. Their rights and interests will remain protected under the Companies Act 2016.
GN3 applies to financially distressed companies listed on the ACE Market, similar to the Practice Note 17 (PN17) classification for companies on the Main Market.
LYC was classified as a GN3 company in March 2025 after its shareholders’ equity fell below 25% of its issued share capital, requiring it to submit a regularisation plan. The company secured a six-month extension earlier this year and has until the end of November to submit the plan.
Its shares were suspended from trading on August 10 after it missed a deadline to issue its annual report. That suspension was lifted on Aug 28.
However, external auditor SBY Partners PLT flagged LYC Healthcare ability to continue as a going concern after it issued an unqualified opinion with material uncertainties on the group’s financial statements for the financial year ended March 31, 2026 (FY2026).
The auditor highlighted a net loss of RM12.69 million, net current liabilities of RM72.15 million and a shareholders’ deficit of RM10.62 million.
Seeking a new sponsor
LYC said it would appoint a replacement sponsor to facilitate the regularisation plan and ensure compliance with Bursa Malaysia’s ACE Market Listing Requirements.
“The company will make the necessary announcement to Bursa Malaysia Securities upon the appointment of the replacement sponsor,” it said, adding that UOBKH’s termination was not expected to have any immediate financial or operational impact.
LYC, which operates confinement homes, childcare centres, senior living homes and family clinics, has been loss-making since 2012.
For the first quarter ended June 30, 2026 (1QFY2027), the group narrowed its net loss to RM3.17 million from RM4.54 million a year earlier, mainly due to lower operating costs.
Quarterly revenue rose to RM34.05 million from RM32.07 million, supported by higher contributions from its Singapore operations.
Shares of LYC were last traded at 1.5 sen, valuing the company at RM11.1 million. Its share price has fallen 50% year-to-date.