KUALA LUMPUR (May 28): Healthcare services firm Metro Healthcare Bhd has filed for an initial public offering (IPO) on the ACE Market of Bursa Malaysia to raise fresh funds, including for the expansion of its maternity business, as part of its listing transfer from the LEAP Market.

The proposed IPO comprises entirely of public issue of 156.6 million new shares at a price to be determined later, according to its draft prospectus filed to Bursa Malaysia. The listing would offer investors up to 16% stake in the company without any sale of existing shares.

Metro has fully used the RM4.62 million raised from the listing on the LEAP Market in February 2018, and the company said it plans to acquire additional maternity hospitals to grow at a faster rate.

“Our company has identified a maternity hospital in Klang Valley to be acquired, which is equipped with facilities such as administrative building, outpatient clinic, treatment rooms, wards with four beds, labour room, operation theatre and nursery with four bassinets for healthcare service,” Metro said.

The company, which specialises in providing fertility and other obstetrics and gynaecology services, has already begun preliminary discussions with the seller of the maternity hospital, it noted.

Under the public issue, 27.41 million new shares will be made available for the Malaysian public, while eligible persons will be allocated 24.47 million new shares. The remaining 104.74 million new shares has been set aside for approved Bumiputera investors through private placement.

Proceeds from the IPO will also be used for upgrade of the business premises and to meet working capital requirements, and to defray listing expenses.

Metro is majority owned by executive vice chairman Dr Tay Swi Peng @ Tee Swi Peng and his wife Dr Kong Lan Moon, who is also the non-executive director.

In the financial year ended Dec 31, 2023, Metro made a net profit of RM6.25 million, on the back of RM18.08 million in revenue.

MIDF Amanah Investment Bank is the IPO’s principal adviser, sponsor, underwriter and placement agent.