Alpha IVF Group Bhd (0303) fertility care specialist and one of the largest listing on the ACE Market of Bursa Malaysia today.
Oversubscribed by 2.73x at an IPO price of RM0.32 with a market capitalisation of RM1.55 billion.
It is raising RM116.6 million from this listing exercise - business expansion, setting up new in vitro fertilisation (IVF) centres, satelite clinics, sales offices and upgrading of existing specialist centres, facilities and offices.
It has attracted eight cornerstone investors namely; abrdn Malaysia, AHAM Asset Management, AIA Bhd, Eastspring Investments Bhd, Hong Leong Asset Management Bhd, Kenanga Investors Bhd, Lion Global Investors Ltd, and Value Partners Hong Kong Ltd.
Alpha IVF group managing director Datuk Dr Colin Lee Soon Soo said their 2QFY2024 financial performance highlights the group’s ability to ride the wave of medical tourism and growing need for IVF treatments.
It reported a net profit of RM12.21 million and RM38.54 million in revenue for 2QFY24. For the cumulative six months ended Nov 30, 2023, Alpha IVF posted a net profit of RM25.34 million, on the back of revenue of RM80.14 million.
RHB Investment Bank, Public Investment Bank, Mercury Securities, TA Securites and Rakuten Trade have given a target prices of between RM0.28 - RM0.40
There will always be trading opportunities on listing day.
Sell call alpha 32 cents Tp 24-27 cents Let see 1 month time how it look like.but doubt will up as number of shares over 4 billion not over 400 million. 22/3/24 6.20pm
hah just sold all and made a quick 1.6% profit for holding it for 2 days. a nice 5 course tai chow dinner tonight. this stock is a potential sleeper, spoilt by substantial shareholders selling on first day causing retailers to panic for no reason. had wanted to keep this in portfolio but too bad, selfish then all lose lose together
A bit overvalued, but in a future-ready and future-proof industry. These services are going to be more common by the year given the declining fertility.
Well they can go Holland for all I care d. Sorry for billis here kena caught. So my gut feeling was correct after all.. IPO nowadays not a guarantee to lower share price. oh well.. hope you guys all escape too... I bought 550 lots while I bought for my wife 200 lots... managed to clear the 750 lots this morning during the brief increase to 31.5 sen as I bought at 31 sen on listing day. A good business concept but didnt expect the directors to do what they did by heavy selling on the first too given that they have a moratorium of 6 months too. Maybe they are cashing out after all. During BFM podcast they denied that they were cashing out. too good to be true eh?
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) ALPHA IVF GROUP BERHAD
Particulars of substantial Securities Holder Name DATO DR LEE SOON SOO Nationality/Country of incorporation Malaysia Descriptions (Class) Ordinary Shares Details of changes No Date of change No of securities Type of Transaction Nature of Interest 1 29 Mar 2024 20,000 Acquired Direct Interest Name of registered holder DATO DR LEE SOON SOO Description of "Others" Type of Transaction 2 01 Apr 2024 2,900,000 Acquired Direct Interest Name of registered holder DATO' DR LEE SOON SOO Description of "Others" Type of Transaction
Circumstances by reason of which change has occurred Acquisition via open market transaction. Nature of interest Direct and Indirect Interest Direct (units) 1,655,978,442 Direct (%) 34.073 Indirect/deemed interest (units) 446,864,512 Indirect/deemed interest (%) 9.195 Total no of securities after change 2,102,842,954 Date of notice 01 Apr 2024 Date notice received by Listed Issuer 01 Apr 2024
Alpha IVF bullish on industry outlook, to tap Muslim market
KUALA LUMPUR (March 22): Alpha IVF Group Bhd, which staged a lukewarm listing debut on Bursa Malaysia on Friday, said the fertility care company is in a sunrise industry in Southeast Asia, with strong demand for in-vitro fertilisation treatment amid declining birth rates.
Women are opting to start families at later ages, typically in their early thirties, potentially leading to lower chances of pregnancy, Alpha IVF group managing director Datuk Dr Colin Lee Soon Soo told reporters after Alpha IVF’s listing on Friday. Coupled with the significant decline in sperm counts globally, the need for medical assistance in achieving pregnancy is on the rise, he noted.
“If you were to look at the demand for IVF, a simple formula is that for every 800 people, one IVF cycle is required,” Lee noted. “With a population of 32 million people, Malaysia requires 40,000 IVF cycles per annum but it is only doing about 9,000 per annum.”
Indonesia is “even more incredible”, requiring “400,000 cycles per annum with a population of 320 million people,” he said. “However, they are only doing less than 15,000 cycles per annum.”
Shares of Alpha IVF staged a lukewarm trading debut on Friday, amid subdued broader market conditions after the fertility care company’s RM466.5 million initial public offering (IPO).
Alpha IVF Group Bhd group chief financial officer (CFO) Berlinda Soo seen at the group’s Bursa Malaysia listing debut on Friday. Malaysia’s total fertility rate, which indicates the average number of children born to a woman during her reproductive years between 15 and 49 years of age, has fallen to the lowest in 50 years and below the rate of 2.1 which a population needs to replace itself, according to official statistics.
While the cost of medical treatment has been rising over the past years due to medical inflation and the strengthening US dollar, Lee said the company has been able to absorb these rising costs without passing much onto its customers, thanks to the increasing economies of scale.
Alpha IVF mainly focuses on assisted reproductive services with a strong emphasis on in-vitro fertilsation, a medical procedure where eggs are collected and fertilised by sperm in a laboratory, before implanted in the womb. The company currently operates two centres in Malaysia and one in Singapore.
The company aims to target the largely untapped market segment of Muslim patients through the upcoming launch of its fourth specialist centre, which will be attached to KPJ Damansara Specialist Hospital 2, Lee said.
“We expect to tap into the existing clientele of KPJ, which is predominantly Muslim” and (Muslims) have a strong presence in Indonesia and the Middle East, he said. “We will work together with KPJ to market the IVF services to these two predominantly Muslim areas,” Lee added.
Alpha IVF makes RM13.6 mil net profit in 3Q, sees rising demand for fertility solutions amid resurgence in medical tourism https://theedgemalaysia.com/node/708156
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Wan Nee
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Posted by Wan Nee > 1 month ago | Report Abuse
now only 0.32