DC Healthcare to raise RM49.81mil from IPO

DC Healthcare managing director Dr Chong Tze Sheng (left) and M&A Securities managing director of corporate finance Datuk Bill Tan

KUALA LUMPUR: ACE Market-bound DC Healthcare Holdings Bhd aims to raise RM49.81mil from its initial public offering (IPO) to fund its growth plans.

In conjunction with the launch of its IPO prospectus, the aesthetic medical services provider said RM9.44mil of the proceeds will go towards establishing aesthetic medical clinics and RM13.12mil for the purchase of medical machinery and equipment.

RM6.24mil will go towards the payment of borrowings while RM17.01 will be used for working capital including staff salaries as well as medical supplies and consumables.

The remaining RM4mil will be used for listing expenses.

"DC Healthcare’s expansion plan is based on demand for aesthetic medical services as people are becoming more aware on skin health, as well as wanting to look and feel good about themselves, especially in the long run.

"It is projected that aesthetic medical services and general medical services related to skin disease will increase due to people having more disposable income for discretionary spending and becoming better educated on skin conditions,” said managing director Dr Chong Tze Sheng.

Meanwhile, M&A Securities Sdn Bhd deputy head of corporate finance Danny Wong said the growing acceptance of aesthetic medical services leads to a projected domestic compound annual growth rate of 18.8% from 2021 to 2027, for a total market value of RM1.03bil.

DC Healthcare, popularly known as Dr Chong Clinic or Klinik Dr Chong, provides aesthetic services, general medical services and sale of skincare products.

The company said it currently has 13 clinics and 10 LCP Certified Aesthetic Physicians, assisted by 29 resident medical doctors in the central and southern regions of Peninsular Malaysia namely in Negeri Sembilan, Selangor, Johor, and Kuala Lumpur.

For the financial year ended 31 December 2022, the group recorded revenue of RM51.96mil compared with RM25.48mil in FY21 with a net profit margin of 18.4% and 18.06% respectively.

Aesthetic services contributed 89.96% to total revenue for FY22 and 84.88% in FY21, compared to general medical services that contributed 10.04% in FY22 and 15.12% in FY21.

In addition, for the financial year ended Dec 31, 2020, and Dec 31, 2019, DC Healthcare registered revenue RM14.45mil and RM12.21 mil respectively.

Aesthetic services contributed 89.80% to total revenue in FYE2019 and 87.5% in FY20, while general medical services contributed 10.2% in FY19 and 12.5% in FY20.

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