Alpha IVF Group Berhad (ALPHA) recently announced its strategic move to establish a new company in Manila, Philippines, as part of its ambitious expansion plan. As an investor who has been with ALPHA since their IPO, this development certainly catches my attention.

A snapshot of Alpha IVF’s clinic.

Let’s take a closer look at what this expansion entails.

ALPHA, through its wholly-owned subsidiary, will be setting up Alpha IVF (Manila) Incorporated (AIMI) in collaboration with two highly respected doctors in the field of IVF, Dr. Romerico F. Torres and Dr. Maria Victoria Tan.

The shareholder structure is designed to leverage the expertise of these seasoned professionals, both of whom bring a wealth of experience and a deep understanding of reproductive medicine to the table.

A snippet of AIMI’s shareholders structure post equity contribution..

Dr. Romerico F. Torres, a Filipino national, is a board-certified obstetrician and gynaecologist with a specialisation in Reproductive Endocrinology and Infertility. His credentials are impressive, with education and training from the University of the Philippines College of Medicine and the National University of Singapore. His current roles include Assistant Professor in Obstetrics and Gynaecology and Vice-President of the Philippine Society for Reproductive Medicine, among others.

Similarly, Dr. Maria Victoria Tan, also from the Philippines, is a board-certified specialist in the same field. With postgraduate qualifications from the University of the Philippines and advanced training in Japan, Dr. Maria is currently the owner of the Repro Optima Center for Reproductive Health Inc., adding a strong entrepreneurial dimension to her clinical expertise.

The decision to enter the Philippine market is a strategic one, given the country’s population of 115 million and the increasing demand for fertility services. The Philippines has seen a decline in fertility rates, creating a significant gap in IVF services that ALPHA aims to fill.

Fertility rate of Philippines, Source from datacommons.

As a matter of fact, ALPHA has on 21st August 2024 announced a reallocation of RM27.73 million, approximately 23.77% of its IPO proceeds, to fund this expansion. This capital will be used not only for establishing new medical centres and satellite clinics in the Philippines but also for similar expansions in other Asian markets, including Malaysia, Indonesia, and China. This move is expected to bolster ALPHA’s presence across the region, positioning the company as a leading player in the IVF sector.

A snippet of ALPHA’s variation of IPO proceeds breakdown.

In conclusion, ALPHA’s expansion into the Philippines represents a significant growth opportunity. The strategic partnership with renowned local experts, coupled with the country’s unmet need for fertility services, positions ALPHA well for success in this new market. Investors should keep a close eye on how this expansion unfolds, as it could be a game changing moment in ALPHA’s growth story.