IPO: Alpha IVF Ace Market Debut Opens Flat At 32sen, Dipping To 30.5sen Soon After (Updated)

Alpha IVF Group Bhd opened flat at 32 sen on its ACE Market debut today (Mar 22) before falling marginally to 30.5sen low as t 9.45am. The counter had an opening volume of 12.99 million shares.

At 32 sen per share, the Fertility care group was valued at about 21.92 times its price-earnings ratio, based on a net profit of RM54.79 million and basic earnings per share of 1.46 sen for the financial year ended May 31, 2023 (FY2023) as stated in its prospectus. Its market capitalisation stood at RM1.56 billion, based on a share capital of 4.86 billion shares.

The company, with the largest IPO on the ACE Market so far, saw an oversubscription of 2.73 times prior to its listing.

Speaking at the Group’s listing ceremony, Alpha IVF Group Managing Director Dato’ Dr Colin Lee, emphasised leveraging on the Group’s heightened visibility as a publicly listed entity to create awareness of its high In-vitro Fertilisation (IVF) success rates to the largely untapped market segment of Muslim patients.

The establishment of Alhaya–KL is one of Alpha IVF Group’s expansion strategies in the local market.

The Muslim-friendly Alhaya-KL will be strategically attached to KPJ Damansara Specialist Hospital 2 and aims to leverage on KPJ’s position as a leading healthcare provider in Malaysia to reach KPJ’s strong customer base of Muslim patients.

Lee said: “I am excited to see our newest specialist centre set up in a leading hospital in Klang Valley. Not only do we have access to the facilities in KPJ’s state-of-the-art hospital, the icing on the cake is that we are able to bring our IVF successes to even more patients through KPJ, especially the Muslim market.

“We are pleased with this exciting opportunity, and hope that the strategic approach will allow us to effectively target the substantial Muslim market segment locally and internationally, which will underpin one of our key prongs of growth.”

In addition to Alhaya–KL, Alpha IVF Group plans to use part of the IPO proceeds to set up two more IVF specialist centres in Malaysia and is currently in the process of finding suitable locations. One centre is expected to be completed by the end of the financial year ending 31 May 2025, and another by the end of the financial year ending 31 May 2026.

For regional expansion, the Group intends to expand its geographical footprint by establishing one specialist centre and four satellite clinics in Indonesia. Moreover, Alpha IVF Group aims to further extend its reach by establishing another specialist centre elsewhere in Southeast Asia and opening two sales representative offices in China

The Group posted a net profit of RM25.3 million on group revenue of RM80.1 million for the six months ended 30 November 2023. The favourable performance was driven by higher demand for IVF treatments, as well as medical tourists who sought fertility treatment at our centres. Due to the Group only listing its shares on ACE Market today, there is no comparison to the previous year’s six-month period.

Meanwhile, in the previous financial year ended 31 May 2023, the Group recorded RM137.5 million in revenue and RM53.2 million net profit, which included a one-off gain of RM11.3 million in fair value gain. 

Alpha IVF Group’s IPO on the ACE Market of Bursa Malaysia entailed the public issue of 364.5 million new shares and 1,093.5 million offer-for-sale shares, at an issue price of 0.32 sen per share, representing 30.0% of the enlarged share capital.

The overall value of the IPO is worth RM466.6 million, with Alpha IVF Group receiving RM116.6 million and the offerors receiving the remaining RM349.9 million. Out of the total proceeds of RM116.6 million, RM72.8 million will be utilised to develop new specialist centres, satellite clinics, and sales representative offices as part of their domestic and global expansion strategy.

A further RM15.7 million will be allocated for expansion and upgrade of existing specialist centres, facilities, and corporate office; RM2.2 million for research and development (R&D), as well as the remaining RM25.9 million for general working capital, general corporate purposes, and defraying of listing expenses.

AmInvestment Bank Berhad serves as the principal adviser, sponsor, lead bookrunner, and sole underwriter for the Group’s IPO exercise.

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