DC Healthcare Holdings Berhad which is aiming for an Ace Market IPO is targeting to raise approximately RM49.81 million from the exercise it said during the prospectus launch.
The group which is involved in the aesthetic medical services provider specialising in the provision of non-invasive and minimally invasive procedures is the latest among a slew of IPO’s the local bourse is seeing.
The IPO it said will raise RM49.81 million via the issuance of 199.26 million new shares at the IPO price of RM0.25 per share to fund DC Healthcare’s growth plans as well as working capital and repayment of borrowings.
Proceeds from the exercise will be used in the following manner RM9.44 million to establish aesthetic medical clinics, RM13.12 million to purchase medical machinery and equipment, RM6.24 million to repay borrowings, RM17.01 million for working capital, including staff salaries as well as medical supplies and consumables and RM4.00 million for estimated listing expenses
Managing Director of DC Healthcare, Dr. Chong Tze Sheng said, “DC Healthcare’s expansion plan is based on demand for aesthetic medical services as people are becoming more aware on skin health, as well as wanting to look and feel good about themselves, especially in the long run. It is projected that aesthetic medical services and general medical services related to skin disease will increase due to people having more disposable income for discretionary spending and becoming better educated on skin conditions.”
Mr. Danny Wong, Deputy Head of Corporate Finance, of M&A Securities Sdn Bhd said, “ With the growing acceptance of such treatments, the domestic aesthetic medical services market is projected to have a compound annual growth rate of 18.8% from 2021 to 2027 valuing the total market at RM1.03 billion.”
DC Healthcare – or famously known ‘Dr. Chong Clinic’ or ‘Klinik Dr. Chong’ – provides aesthetic services, general medical services and sale of skincare products. DC Healthcare currently has 13 clinics and 10 LCP Certified Aesthetic Physicians, assisted by 29 resident medical doctors in the central and southern regions of Peninsular Malaysia namely in Negeri Sembilan, Selangor, Johor, and Kuala Lumpur.
For the financial year ended 31 December 2022 (“FYE2022”), the Group recorded revenue of RM51.96 million compared with RM25.48 million in FYE2021 with a net profit margin of 18.40% and 18.06% respectively.
Aesthetic services contributed 89.96% to total revenue for FYE2022 and 84.88% in FYE2021, compared to general medical services who contributed 10.04% in FYE2022 and 15.12% in FYE2021.
In addition, for the financial year ended 31 December 2020 (“FYE2020”) and 31 December 2019 (“FYE2019”), DC Healthcare registered revenue RM14.45 million and RM12.21 million respectively. Aesthetic services contributed 89.80% in FYE2019 and 87.50% in FYE2020 to the total revenue, while general medical services contributed 10.20% in FYE2019 and 12.50% in FYE2020.
