KUALA LUMPUR: Optimax Holdings Bhd staged a strong debut on the ACE Market on Tuesday, opening at 71 sen or 41 sen above its offer price of 30 sen.
At 9.05am, it was trading at 68 sen, up 38 sen. There were 27.17 million shares traded at prices ranging from 63.5 sen and 73 sen.
The FBM KLCI fell 2.76 points or 0.18% to 1,557.98. Turnover was 471.60 million shares valued at RM183.96mil. There were 199 gainers, 215 losers and 244 counters unchanged.
Optimax provides eye specialist services through a chain of 13 specialist centres that are located in several states.
As at May 31, it has a specialist team of 18 eye surgeons who are, in turn, assisted by a professional workforce of 33 optometrists and 30 other clinical nurses.
Optimax's eye specialist services: i) refractive surgery comprising laser vision correction and implant vision correction, ii) treatment of eye diseases and disorders including cataract surgery and other eye medical treatment, iii) consultation and dispensary services comprising doctor consultation and medication, and iv) oculoplastic surgery.
Its CEO Sandy Tan said: “Our public listing and strengthens the corporate profile of Optimax and it is the first step in getting investors to know our business better since we began operating our first eye specialist clinic in Taman Tun Dr Ismail in 1995”.
Tan said the company’s IPO was very favourable, with the portion of the IPO shares made available to the Malaysian public comprising 13.50 million shares oversubscribed by 82.07 times.
The response was also positive for the four million shares made available for application by the eligible directors and employees and the 52.50 million shares by way of private placement to Malaysian institutional and selected investors.
Optimax plans to use 49.31% or RM10.35 mil of the RM21mil raised through the IPO for capital expenditure, 16.76% or RM3.52mil to repay borrowings, 16.79% or RM3.52mil for working capital and 17.14% or RM3.60mil for listing expenses.
PublicInvest Research had accorded a fair value of 51 sen. However, UOB Kay Hian Malaysia Research had initiated a Buy with a target price of 72 sen, based on 20 times 2021F PE.
UOB Kay Hian Research said the company could exhibit good growth prospects with earnings CAGR of 18% for 2019-22F, driven by demand for cataract and laser operations.
“Optimax has established market presence with experienced resident surgeons, and is a potential beneficiary of an ageing and growing myopic population.
“Optimax has received overwhelming response, with its 13.5 million IPO shares being oversubscribed by 82 times. This could lend strength to share price upside given its scarcity premium and good value proposition, ” the research house said.
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