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DC Healthcare Signs Underwriting Agreement with M&A for IPO Exercise

Publish date: Tue, 30 May 2023, 01:51 PM

Group plans ACE Market listing with public issue of 199.26 million shares

KUALA LUMPUR, 30 MAY 2023DC Healthcare Holdings Berhad ("DC Healthcare" or the "Group"), a specialist in aesthetic medical services, is pleased to announce that an underwriting agreement has been entered with M&A Securities Sdn. Bhd. (“M&A”) for the Group’s upcoming initial public offering (“IPO”) on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).

Based on the prospectus exposure as published on the Bursa Securities website, DC Healthcare’s listing exercise involves the public issue of 199.26 million shares or 20.0% of the Group’s enlarged number of issued shares offered at the IPO price and an offer for sale of 99.63 million shares representing 10.0% of the enlarged share capital to selected investors.

The IPO shares will be allocated in the following manner:

Public issue

Malaysian public

  • 49.82 million issue shares representing 5.0% of the Group’s enlarged share capital, of which 2.5% will be made available to public investors and 2.5% will be made available to bumiputera public investors

Eligible directors and employees

  • 29.89 million issue shares representing 3.0% of the Group’s enlarged share capital to be reserved for eligible directors and employees under the pink form allocations

Private placement to selected investors

  • 119.55 million issue shares representing 12.0% of the Group’s enlarged share capital reserved for selected investors

Offer for sale

  • Offer for sale of 99.63 million offer shares representing 10% of the Group’s enlarged share capital by way of private placement to selected investors

Under the agreement, M&A will underwrite 79.70 million issue shares made available to the Malaysian public and through the pink form allocations. The balance 119.56 million issue shares and 99.63 million offer shares to be placed out by M&A will not be underwritten.

L-R: Dr. Lai Ngan Chee, Executive Director and Dr. Chong Tze Sheng, Managing Director of DC Healthcare; Datuk Bill Tan, Managing Director of Corporate Finance and Mr. Danny Wong, Deputy Head of Corporate Finance of M&A Securities

Managing Director of DC Healthcare, Dr. Chong Tze Sheng said, “We are looking forward to working with M&A for the IPO, continuing a journey that we first began with the opening of our first clinic in 2016 that provided general medical services and then transitioned into providing and focusing on aesthetic services. We now have 12 aesthetic medical clinics and are planning to open more through utilising the proceeds from the IPO.”

Datuk Bill Tan, Managing Director of Corporate Finance, of M&A Securities Sdn Bhd, said, “DC Healthcare’s strength is the provision of non-invasive and minimally invasive procedures in aesthetic services. The Group has a team of qualified aesthetic physicians as well as medical doctors in all its clinics that provide both aesthetic and general medical services. The demand for aesthetic services has grown in tandem with the growing affluence of Malaysians and we have no doubt that DC Healthcare will be able to leverage on this demand.”

The Group provides aesthetic services, general medical services and sale of skincare products. DC Healthcare has a market presence in the central and southern regions of Peninsular Malaysia namely in Negeri Sembilan, Selangor, Johor, and Kuala Lumpur.

For the 5 months financial period ended 31 May 2022 (“FPE2022”), the Group recorded revenue of RM18.45 million compared with RM8.48 million in FPE2021 with a net profit margin of 22.08% and 16.47% respectively. 

Aesthetic services contributed 92.11% to total revenue for FPE2022 and 87.46% in FPE2021.

In addition, for the financial year ended 31 December 2021 (“FYE2021”), DC Healthcare registered revenue of RM25.48 million while for FYE2020 and FYE2019, the Group recorded RM14.45 million and RM12.21 million in revenue respectively. Aesthetic services contributed 89.80%, 87.50% and 84.88% to total revenue in FYE2019, FYE2020 and FYE2021 respectively.

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