Optimax to raise RM21mil from listing

Listing plan: (from left) Sandy Tan, Affin Hwang IB deputy managing director Yip Kit Weng, Optimax non-executive director Datuk Tan Boon Hock, chief financial officer Michelle Tan and senior medical director Dr Stephen Chung at the prospectus launch.

KUALA LUMPUR: Optimax Holdings Bhd, en route for a listing on the ACE Market of Bursa Malaysia, plans to raise RM21mil from the exercise.

The eye specialist service provider is confident that its initial public offering (IPO) would be oversubscribed by multiple times, given the overwhelming interest by institutional investors and its presence in the healthcare industry during the Covid-19 pandemic.

Despite the challenging period during the movement control order (MCO) that affected businesses, Affin Hwang Investment Bank Bhd head of equity capital markets Arvin Chia said healthcare stocks on Bursa are having volumes traded at “very healthy” levels during this pandemic.

“We are confident of Optimax performance post-IPO due to the level of the overwhelming interest and demand by institutional investors, and the leading position the company commands in the healthcare industry, ” he told reporters at the IPO prospectus launch.

Affin Hwang IB is Optimax’s sole placement agent and sponsor for the IPO.

The company’s IPO involves a public issue of 70 million shares at 30 sen each. Of the 70 million shares, it is offering 13.5 million shares to the Malaysian public, four million to eligible employees and directors, while 52.5mil will be allocated to Malaysian institutions and selected investors.

From the IPO, Optimax is looking to raise around RM21mil, which would be utilised for capital expenditure (RM10.35mil), repayment of borrowings (RM3.52mil), working capital (RM3.53mil) and estimated listing expenses (RM3.6mil).

Optimax chief executive officer Sandy Tan said the company’s immediate plans would be to expand its ambulatory care centre network in the central region of Peninsular Malaysia, which will cater to the potential needs of urban communities in the densely populated region.

“Part of the proceeds from the IPO will go towards equipping our Seremban specialist centre and purchasing the property to convert this centre into an ambulatory care centre.

“We are also bringing in the latest technology for eye check-up equipment and tools for existing centres as part of plans to upgrade the equipment as well as increase our services and expand our capacity.

“We aim to increase our manpower by two to three ophthalmologists in Seremban to be at par with our headquarters in Taman Tun Dr Ismail, Kuala Lumpur, ” she added.

In 1995, Optimax started with its first specialist centre in Taman Tun Dr Ismail. Since then, it has expanded into a chain of 13 eye specialist centres across Malaysia including one specialist hospital, 11 ambulatory care centres and one specialist clinic.

During the MCO period, Tan disclosed that only emergency cases were attended, which resulted in a decline in its patients.

Following the easing of the MCO measures, Tan said the number of patients has increased gradually and the company is confident of achieving its internal target for financial year ending Dec 31,2020 (FY20).

For FY19, Optimax posted a revenue and net profit of RM62.6mil and 8.74mil, respectively. The company is scheduled to be listed on Aug 18.

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