KUALA LUMPUR: Aesthetic medical services provider DC Healthcare Holdings Bhd tpday launched its prospectus for an initial public offering (IPO) on the ACE Market of Bursa Malaysia to raise RM49.81 million.
DC Healthcare will issue 199.26 million new shares at the IPO price of RM0.25 per share to fund DC Healthcare's growth plans as well as working capital and repayment of borrowings.
The bulk of the proceeds will be used for working capital, including for staff salaries, medical supplies and consumables; establishment of aesthetic medical clinics in northern part of Peninsular Malaysia and purchase medical machinery and equipment, which is to open clinics in the northern region of Peninsular Malaysia as well as working capital and repayment borrowings.
DC Healthcare, managing director Dr. Chong Tze Sheng said DC Healthcare's expansion plan is based on demand for aesthetic medical services as people are becoming more aware of 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, he said in a statement today.
M&A Securities Sdn Bhd deputy head of corporate finance Danny Wong said with the growing acceptance of such treatments, the domestic aesthetic medical services market is projected to have a compound annual growth rate of 18.8 per cent from 2021 to 2027 valuing the total market at RM1.03 billion.
DC Healthcare is an aesthetic medical services provider specialisng in the provision of non-invasive and minimally invasive procedures.
DC Healthcare 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 (FYE2022), the Group recorded revenue of RM51.96 million compared with RM25.48 million in FYE2021 with a net profit margin of 18.40 per cent and 18.06 per cent, respectively.