In its listing exercise, DC Healthcare publicly issued 199.26 million shares, amounting to 20% of the company’s expanded issued share capital.
Out of these, 24.9 million shares were allocated to both public investors and Bumiputera public investors, while 99.63 million shares were made available for purchase by selected investors.
The group successfully raised RM49.81 million through the IPO, with RM9.44 million designated for the establishment of eight new clinics in the northern and southern regions of Peninsular Malaysia.
Additionally, RM13.12 million (26.35%) will be utilised for the acquisition of medical machinery and equipment, while RM6.24 million (12.52%) will be allocated for repaying existing debts.
RM17.01 million (34.15%) has been set aside for working capital requirements, and the remaining RM4 million (8.03%) will be utilised to cover listing expenses.
DC Healthcare chairman Noor Awang said the listing is a significant milestone for the group, allowing it to position itself as the first aesthetic medical services provider to achieve this feat.
“The (listing of DC Healthcare) will allow us to benchmark ourselves as the first aesthetic medical services provider to be listed on Bursa Securities,” he said.
DC Healthcare managing director Chong Tze Sheng added that the listing enables the group to build on its current success and provide greater value to its shareholders.
Analysts positive
Both Mercury Securities Sdn Bhd and Apex Securities Bhd have recommended “subscribe” calls to the group.
Mercury estimates a fair value (FV) of 60 sen based on an earnings per share (EPS) of 2.5 sen and a price-earnings ratio (PER) of 24 times projected for the financial year ending Dec 31, 2024 (FY2024), a 10% discount to the healthcare sector’s FY2024 PER.
Apex Securities, meanwhile, has assigned a slightly lower FV of 57 sen to the group, based on a PER of 25 times the company’s estimated EPS for FY2024.
This valuation aligns with the PER of Bursa Malaysia’s healthcare index for FY2024, excluding glove counters.
Public Investment Bank Bhd was more cautious in its recommendation, placing a FV of 37 sen to the group. The FV reflects a PER of 16 times the group’s projected EPS for the financial year ending FY2024, which is estimated to be 2.3 sen.
For the first quarter ended March 31, 2023, (Q1 FY2023) DC Healthcare posted a net profit of RM2.4 million on the back of a RM16.8 million revenue, of which 88.8% comprised aesthetic services.
In FY2022, the group’s profit after tax (PAT) was RM9.6 million compared to RM4.6 million a year earlier, while revenue stood at RM52 million, more than double the RM25.5 million made in FY2021.
M&A Securities Sdn Bhd, is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.