From left: DC Healthcare executive director Dr Lai Ngan Chee, managing director Dr Chong Tze Sheng, M&A Securities managing director of corporate finance Datuk Datuk Bill Tan and deputy head of corporate finance Danny Wong
KUALA LUMPUR: DC Healthcare Holdings Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The aesthetic medical services specialist said the listing exercise involves the public issue of 199.26 million shares or 20% of its enlarged number of issued shares, and an offer for sale of 99.63 million shares or 10% of the enlarged share capital to selected investors.
In a statement, DC Healthcare said M&A will underwrite 79.7 million issue shares made available to the Malaysian public and through the pink form allocations.
The balance 119.55 million issue shares for selected investors and 99.63 million offer shares to be placed out by M&A will not be underwritten.
According to DC Healthcare managing director Dr Chong Tze Sheng, the group seeks to expand the number of its aesthetic medical clinics through utilising the proceeds from the IPO.
"“We are looking forward to working with M&A for the IPO, continuing a journey that we first began with the opening of our first clinic in 2016 that provided general medical services and then transitioned into providing and focusing on aesthetic services," he said.
DC Healthcare provides aesthetic services, general medical services and sale of skincare products.
The company has a market presence in the central and southern regions of Peninsular Malaysia, namely in Negeri Sembilan, Selangor, Johor and Kuala Lumpur.
For the five months of the financial period ended May 31, 2022, the group recorded revenue of RM18.45mil compared with RM8.48mil in the same period in 2021 with a net profit margin of 22.08% and 16.47% respectively.
It said aesthetic services contributed 92.11% to total revenue during the 2022 period and 87.46% in the 2021 period.
In addition, for the financial year ended Dec 31, 2021, DC Healthcare registered revenue of RM25.48mil, as compared with revenue of RM14.45mil and RM12.21mil in FY20 and FY19 respectively.
Aesthetic services contributed 89.80%, 87.50% and 84.88% to total revenue in FY19, FY20 and FY21 respectively.
