Company Background

The Company was incorporated in Malaysia on 10 February 2021 as a private limited company under the name of Alpha IVF Group Sdn Bhd and was subsequently converted to a public limited company on 21 August 2023 under the present name Alpha IVF Group Berhad. The Company is an investment holding company.

Through the subsidiaries, the company is primarily a fertility care specialist focusing on the provision of assisted reproductive services in Malaysia and Singapore.

Use of proceeds

1. Establishing new medical centres, satellite clinics and sales representative offices - 62.41% (within 36 months)
2. Expansion and upgrade of existing medical centres, facilities and corporate office - 13.46% (within 36 months)
3. Research and development - 1.89% (within 36 months)
4. General working capital - 14.69% (within 36 months)
5. General corporate purposes - 2.23% (within 36 months)
6. Defraying the listing expenses - 5.32% (Within 1 month)

Establishing new medical centres, satellite clinics and sales representative offices - 62.41% (within 36 months)

The company intends to expand domestically and abroad by setting up 2 new specialist centres in Malaysia, 1 new specialist centre in Indonesia, and 1 new specialist centre in Cambodia or Laos. To support its venture into Indonesia, the company also intends to set up 4 satellite clinics in major cities in Indonesia. The company also intends to set up 2 sales representative offices in China to establish a direct presence there.

• Set up two (2) new specialist centres in Malaysia - RM 32 mil
• Set up one (1) specialist centre and four (4) satellite clinics in Indonesia - RM 24.1 mil
• Set up one (1) specialist centre in Cambodia or Laos - RM 13.9 mil
• Set up two (2) sales representative offices in China - RM 2.8 mil

Expansion and upgrade of existing medical centres, facilities and corporate office - 13.46% (within 36 months)

The company has 2 specialist centres located in Selangor and Penang, Malaysia and one specialist centre in Singapore. Part of the plans is to upgrade its three existing specialist centres which will cover the following areas:

• Laboratory and medical facilities - RM 8.45 mil
• IT systems - RM 4.05 mil
• Corporate Office - RM 1 mil
• Renovation and expansion of existing facilities - RM 2.2 mil

Research and development - 1.89% (within 36 months)

The company intends to expand its R&D including the expansion of the R&D team and purchasing laboratory equipment to facilitate its R&D. The R&D activities are supported by the embryologists where the embryologists will be dedicated to the R&D projects, which aim to leverage technologies and methodologies to enhance the success rate of IVF, improve fertilisation rates, and assess and enhance the quality of eggs. The expansion in R&D resources enables the company to keep up to date with the latest developments in assisted reproductive services to support its business growth.

The estimated cost for the expansion of the R&D resources is RM2.20 million as set out below:

General working capital - 14.69% (within 36 months)

To support the corporate and business expansion of the Group, the Group intends to employ 15 additional personnel ranging from C-suite executives to support staff. These new staff will only be focusing on the business operation, investor relations and business expansion of the Group. Approximately RM10.55 million will be utilised for the payment of salaries and remuneration to these new staff over 36 months

The company has also allocated RM6.59 million for other general working capital purposes which include the purchase of medical supplies and consumables, payment of existing staff costs which include staff salaries, remuneration and contributions to the relevant bodies, and office-related expenses such as rental, utilities and maintenance of property, plant and equipment. The actual breakdown of the working capital mentioned above cannot be determined at this juncture as it will depend on, among others, the actual operating and funding requirements at the time of usage.

General corporate purposes - 2.23% (within 36 months)

The company intends to carry out marketing activities to promote its services while at the same time, increasing the market awareness of the Group and generating sales leads for the business in Malaysia and foreign markets. As part of the marketing plans, the company intends to carry out a two-prong strategy as indicated below:

• digital marketing activities including creating and developing digital content to educate prospective customers about assisted reproductive services, search engine optimisation to increase brand awareness, engagement of influencers to promote its assisted reproductive services as well as other marketing activities on various social media and paid media channels
• conventional marketing activities including events such as the launching ceremony of the specialist centres, educational seminars, exhibitions and others as well as printed marketing materials including brochures and booklets about the assisted reproductive services.

The total estimated cost for the expansion of the marketing activities is as set out below:

Business model

The business model is depicted in the following diagram:

The company is a fertility care specialist focusing on the provision of assisted reproductive services in Malaysia and Singapore. Assisted reproductive services is a general term that includes all types of fertility treatment and procedures to assist people who have difficulties getting pregnant.

The company’s specialist centres are equipped with consultation rooms, andrology, embryology and PGT laboratories (except in Singapore), operating theaters and post-operative day care facilities. The centres are supported by medical specialists, embryologists, geneticists, nurses and nursing aides. The specialist centres enable the company to provide diagnostics services (using a combination of in-house and external service providers), treatment and procedures, and cryopreservation.

The company offers a range of assisted reproductive services such as IVF, to assist patients with infertility conditions in achieving clinical pregnancy. While the company focuses on IVF services, it also provides other assisted reproductive procedures including intracytoplasmic sperm injection (ICSI), intrauterine insemination (IUI), various diagnostics, testing and screening procedures as well as

cryopreservation of eggs, sperm and embryos.

Click here to continue the IPO - Alpha IVF Group Berhad (Part 2)

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