ACE Market-bound Alpha IVF to raise RM466.5mil from IPO

Alpha IVF non-independent executive director and managing director Datuk Dr Colin Lee Soon Soo (fifth from left) with other members of the board, and representatives from AmInvestment Bank at the launch of the IPO prospectus

KUALA LUMPUR: Alpha IVF Group Bhd aims to raise RM466.5mil from its initial public offering (IPO) en route to its listing on the ACE Market of Bursa Malaysia on March 22, 2024.

The fertility care specialist's IPO exercise entails 1.46 billion shares in the company priced at 32 sen per share, comprising 364.5 million new shares and 1.09 billion offer-for-sale shares from eight offerors.

Group executive director and managing director Datuk Dr Colin Lee Soon Soo said of the amount raised, RM116.6mil will be accrued to the company with the remainder accrued to the offerers.

From the total proceeds received by the company, RM72.8mil will be allocated to establish new IVF centres, satellite clinics, and sales representative offices as part of their expansion plan domestically and internationally.

A further RM15.7mil will be allocated for expansion and upgrade of existing specialist centres, facilities, and corporate office; RM2.2mil for research and development (R&D), as well as the remaining RM25.9mil for general working capital, general corporate purposes, and defraying of listing expenses.

Lee said the company aims to establish three full-fledged fertility centres in Malaysia by the financial year ending May 31, 2026.

It also plans to set up additional IVF specialist centres and four satellite clinics in Indonesia.

Another specialist centre is also being planned at another location in Southeast Asia, while two sales representative offices will be opened in China.

"Finally, we plan to expand our research and development (R&D) initiatives, including expanding our R&D team and purchasing laboratory equipment to aid in R&D.

"Our R&D initiatives will be mainly focused on technology and procedures to improve our pregnancy success rates," said Lee at the launch of the company's IPO prospectus.

Alpha IVF's retail offering will comprise 218.7 million new shares with 194.4 million shares made available to the Malaysian public through ballotting.

Another 24.3 million shares will be allocated to to eligible directors, employees, and individuals who have contributed to the success of Alpha IVF.

The institutional offering will comprise 1.24 billion shares while 607.5 million shares will go to Bumiputera investors approved by the Ministry of Investment, Trade, and Industry.

Applications for Alpha IVF Group’s IPO will close on March 8, 2024, at 5pm.

AmInvestment Bank Bhd serves as the principal adviser, sponsor, lead bookrunner, and sole underwriter for the Group’s IPO exercise.

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Alpha IVF , IPO , listing , ACE market , AmInvestment Bank


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