KUALA LUMPUR: Fertility care specialist Alpha IVF Group Bhd aim to raise RM466.5 million from its initial public offering (IPO) on the ACE market of Bursa Malaysia.
The IPO exercise entails 1.45 billion shares in Alpha IVF priced at RM0.32 per share, comprising 364.5 million new shares and 1.09 billion offer-for-sale shares from eight offerors.
Alpha IVF group executive director and group managing director Datuk Dr Colin Lee Soon Soo said the IPO marked the initiation of a new phase in the company’s growth strategy.
He said of the targeted RM466.5 million IPO proceeds, RM116.6 million will be accrued to Alpha IVF, while the balance of RM349.9 million will be accrued entirely to the offerors.
Out of the total proceeds of RM116.6 million received by Alpha IVF, RM72.8 million 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 RM15.7 million will be allocated to expand and upgrade existing specialist centres, facilities, and corporate office, RM2.2 million for research and development (R&D).
The remaining RM25.9 million is for general working capital, general corporate purposes, and defraying of listing expenses.
“Since our inception, we have experienced remarkable growth, evolving from 11 staff to our current team of more than 140 staff.
“From a single centre, we have expanded to operate three specialist centres, each dedicated to providing unparalleled care and expertise.
“Most importantly, our hard work has resulted in the birth of over 7,000 precious babies in Malaysia and worldwide.
“Through this IPO, we are looking to raise approximately RM116.6 million in total proceeds for Alpha IVF, which will help to support our capital expenditure and working capital requirements for future growth,” he said at the IPO prospectus launch yesterday.
Lee said the first pillar of the growth strategy is domestic expansion, as the company aim to establish three full-fledged fertility centres in Malaysia by the financial year ending May 31, 2026 (FY26)
Secondly, leveraging its success and experience, Alpha IVF intends to expand internationally by setting up additional IVF specialist centres and four satellite clinics in Indonesia.
The four satellite clinics will be set-up in various cities in Indonesia as an extension of Alpha IVF specialist centre.
“We plan to expand our reach by setting up another specialist centre elsewhere in Southeast Asia and two sales representative offices in China.
“Finally, we plan to expand our R&D initiatives, including expanding our R&D team and purchasing laboratory equipment to aid in R&D.
“Our R&D initiatives will mainly focus on technology and procedures to improve our pregnancy success rates,” Lee said.
Lee said the increased R&D resources will allow Alpha IVF to stay current with the latest developments in vitro fertilisation (IVF) and help grow the business.
AmInvestment Bank Bhd chief executive officer Tracy Chen Wee Keng said Alpha IVF’s entrance into Bursa Malaysia enriches the dynamics of the Malaysian healthcare landscape, presenting investors with a rare opportunity to invest in a leading player within a thriving industry.
“The global demand for IVF treatment accentuates Alpha IVF’s strategic market positioning and its expansive growth potential, making its listing a pivotal asset to the vibrancy of the healthcare industry.
“The strong endorsement from 8 top-tier insurance funds and renowned asset management firms in Malaysia, Singapore and Hong Kong, as cornerstone investors in Alpha IVF’s IPO, underscores the exceptional investment opportunity Alpha IVF presents.
“The commitment from such esteemed financial institutions speak volumes about Alpha IVF’s promising prospects in the coming years,” she said.
The IPO structure comprises an institutional offering of 1.23 billion shares to institutional and selected investors, including 607.5 million shares allocated to Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (Malaysia).
Among the total institutional offerings, 145.8 million are newly issued shares.
The remaining 218.7 million new shares constitute the retail offering, with 194.4 million available to the Malaysian public through balloting.
Additionally, 24.3 million shares are allocated to eligible directors, employees, and individuals who have contributed to the success of Alpha IVF.
“Looking ahead, we see a surge in demand for IVF, driven by the increasing trend of starting a family late and government IVF
incentives.
“Our expansion aligns perfectly with the current landscape, allowing us to capitalise on these opportunities,” Lee said.
The confidence of Alpha IVF’s management in its prospects sets the backdrop for its dividend policy.
The company aims to distribute at least 60 per cent of the annual audited profit after tax attributable to shareholders to reward the shareholders.
With the prospectus launched, applications for Alpha IVF’s IPO will be accepted starting Monday.
Alpha IVF is scheduled to list on the ACE market of Bursa Malaysia on March 22, 2024.
AmInvestment Bank is the principal adviser, sponsor, lead bookrunner, and sole underwriter for Alpha IVF’s IPO exercise.
