Cengild Medical Bhda healthcare provider specialising in the diagnosis and treatment of gastrointestinal and liver diseases, and obesity, is advancing closer to becoming a public listed entity with the launch of its prospectus in conjunction with the Company’s listing on the ACE Market of Bursa Malaysia Securities Bhd.
The prospectus launch marks the opening of applications for Cengild Medical’s initial public offering (“IPO”) of 218.80 million shares. The IPO applications will close on 5th April 2022 and the listing date is targeted for 18th April 2022.
Cengild Medical’s unique value proposition lies in its position as the only independent full-fledged medical centre in Malaysia specialising in gastrointestinal and liver diseases, and obesity.
Its existing 36,588 square feet medical centre located at Nexus Bangsar South is equipped with ten (10) clinics, three (3) endoscopy rooms, twenty-eight (28) beds (which include eight (8) day care beds), special diagnostic (treadmill stress test and echocardiography) department, two (2) operating theatres, accident & emergency department, pharmacy, laboratory, and central sterile supply department. Cengild Medical’s operating theatres are fully equipped to perform procedures ranging from keyhole surgery to open surgery.
Other facilities include a radiology department which is equipped with facilities such as CT scanner, ultrasonography and fluoroscopy equipment. Subspecialty allows Cengild Medical to provide in-depth and more targeted diagnostic services and treatment, and to undertake complex procedures and surgeries related to gastroenterology and liver diseases, and obesity.
At the retail price of RM0.33 per IPO share, Cengild Medical will have a market capitalisation of up to RM270.20 million upon listing and raise gross proceeds of up to RM72.20 million.
Of the total gross proceeds, RM13.00 million will be utilised for the expansion of its existing medical centre at Nexus @ Bangsar South, Kuala Lumpur, by leasing additional space of approximately 12,000 to 15,000 square feet to cater to current and future demand for our medical services, especially endoscopic procedures to strengthen its position in the segment. RM37.10 million will be utilised for geographical expansion by establishing two
(2) new full-fledged medical centres specialising in gastrointestinal and liver diseases, and obesity in other major cities in Malaysia, such as Johor Bahru, Penang or Ipoh. RM17.40 million has been set aside for working capital purposes and the remaining proceeds of RM4.70 million will be for defrayment of listing expenses.
Executive Chairman Dato’ Dr Tan Huck Joo said, “We started Cengild in October 2017 with the vision to build a centre of excellence for gastrointestinal and liver diseases, and obesity in Malaysia.
We aim to provide dedicated medical care through skilled expertise of our specialist consultants in a one-stop tertiary care centre. Over the past four and a half years, we have had approximately 67,000 patient visits at our medical centre, performed more than 21,000 endoscopic procedures and more than 3,500 surgeries.
Over the years, our consultants have enabled us to provide a high quality of care to our patients while also ensuring the continued growth and success of our medical centre. From FYE 2018 to FYE 2021, our revenue grew from RM11.68 million to RM63.47 million, representing a CAGR of 75.81%.
The growth is attributed to an increase in revenue in both our consultant services and medical management services. We expect demand for healthcare services to continue increasing, taking into consideration the growing and ageing population, increasing affluence and health awareness in Malaysia’s advancing society.”
The IPO involves a total of 218.80 million shares where 162.86 million shares will be offered via book building to institutional and selected investors, 40.94 million shares will be made available to the Malaysian public via balloting and 15.00 million shares will be set aside for eligible directors, key senior management, employees and persons who have contributed to the success of the group. Hong Leong Investment Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter, and Sole Bookrunner for Cengild Medical’s IPO.
