Company Background

The Company was incorporated in Malaysia under the Act on 18 April 2022 as a public limited company under the name, DC Healthcare Holdings Berhad. The company is principally an investment holding company. The group structure after the Pre-IPO Restructuring but before IPO is as follows

Through the subsidiaries, the company provides aesthetic medical services specialising in Non-Invasive and Minimally Invasive procedures.

Use of proceeds

1. Establishing new aesthetic medical clinics - 18.95% (within 18 months)
2. Purchase of new medical machines and equipment - 26.35% (within 18 months)
3. Repayment of borrowings - 12.52% (within 6 months)
4. Working capital - 34.15% （within 36 months)
5. Estimated listing expense - 8.03% (within 1 month)

Establishing new aesthetic medical clinics - 18.95% (within 18 months)

The Group has a total of 13 aesthetic medical clinics in the Central Region and Southern Region. The company intends to open 8 new aesthetic medical clinics mainly in Southern Region and Northern Region within 18 months from the date of Listing.

In this regard, the company intends to allocate RM9.44 million or 18.9% of the total proceeds from the Public Issue to set up 8 new aesthetic medical clinics, in the following manner:

The average timeframe for the establishment of aesthetic medical clinics ranges from 6 to 9 months from the date of notification to MOH. The estimated minimum and maximum timeframe of 6 to 9 months for the opening of a new aesthetic medical clinic is set out as follows:

Purchase of new medical machines and equipment - 26.35% (within 18 months)

The company intends to allocate RM13.12 million or 26.35% of the total proceeds from the Public Issue to purchase new medical machines and equipment to be installed in the existing and 8 new aesthetic medical clinics.

The medical machines and equipment that the company intends to purchase include:

Repayment of borrowings - 12.52% (within 6 months)

The company intends to utilise RM6.24 million or 12.52% of the total proceeds from the Public Issue to repay its borrowings as follows:

Based on the pro forma combined statements of financial position as at 31 December 2022 and result in an expected total interest savings of approximately RM0.30 million per annum, based on existing prevailing interest rates ranging from 2.24% to 3.80% for hire purchases and 5.00% to 10.15% for term loans. However, the actual interest savings may vary depending on the then-applicable interest rate.

Working capital - 34.15% （within 36 months)

The company intends to allocate RM17.01 million or 34.15% of the total proceeds from the Public Issue to fund the working capital requirements over 36 months from this Listing. The working capital requirements are expected to increase in tandem with the expected growth in the business. The following is the breakdown of the expected utilisation for the working capital:

Business model

The Group is an aesthetic medical services provider specializing in the provision of NonInvasive and Minimally Invasive procedures. The company does not provide Invasive procedures which include surgical procedures such as plastic surgery.

The company operates 13 aesthetic medical clinics located in the Central Region and Southern Region. The business activities are set out as follows:

The business activities are categorised into 2 segments, the Aesthetic Services and General Medical Services.

The company has 10 LCP Certified Aesthetic Physicians and 29 resident medical doctors, who are supported by 21 clinic managers, 65 clinic consultants and 11 clinic assistants (including 5 of the former customer service personnel who have been converted to clinic assistants). The company is also supported by administrative and finance staff who carry out activities on administration and financial matters for the clinics and customers.

Aesthetic Services

1. Facial and skin treatments
   1. Hyperpigmentation
   2. Scars
2. Facial sculpting
   1. Dermal Filler
   2. BTA
   3. HIFU lifting
3. Body contouring
   1. Skin tightening
   2. Slimming
   3. Spider veins
4. Hair growth and removal
   1. Hair growth
   2. Hair removal
5. Sale of skincare products

General Medical Services

The Group provides a range of general medical consultation services which include annual health check-ups (i.e. focusing on wider health scopes including screenings for allergies via blood tests) or providing an assessment to address any existing health concerns of the customers including skin disease treatment.

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