KUALA LUMPUR: Aesthetic medical services provider DC Healthcare Holdings Bhd made its debut on the ACE Market of Bursa Malaysia Securities today at 40 sen a share, a 60 per cent premium over the initial public offering (IPO) price of 25 sen per share.
Managing director Dr Chong Tze Sheng, speaking at a virtual press conference following the listing ceremony, said the company plans to open eight new medical aesthetic clinics within the next 18 months, bringing the number of clinics to 21.
“The expansion will focus primarily on Peninsular Malaysia, specifically in areas such as Penang, Ipoh (Perak), Sungai Petani (Kedah), and Johor.
“This geographical expansion aims to provide better access for existing customers who currently have to travel long distances to reach the clinics. It will also attract potential new customers in these areas, which have shown high potential due to lower competition and increased demand,” he said.
Its 13 current clinics are located in the central and southern regions.
Dr Chong said that setting up a new clinic involves an estimated expenditure of about RM1.5 million to RM2 million for renovation costs and the purchase of medical machines, and the new clinics are expected to break even within six to nine months.
“Facial sculpting, body contouring, and facial skin treatments contribute the most to the gross profit margin. Despite the opening of new branches, the company remains optimistic about maintaining its gross profit margin in the short term,” he said.
On future growth opportunities, Dr Chong said the company is considering medical tourism and actively exploring possibilities in that field as it believes its existing clinics can attract a certain number of foreign tourists.
The IPO exercise raised gross proceeds of RM49.81 million, of which RM9.44 million has been allocated for establishing the eight new clinics, RM13.12 million for the purchase of medical machinery and equipment, RM6.24 million for debt repayment, and RM17.01 million for working capital purposes.
The remaining RM4.0 million has been earmarked for listing expenses.
M&A Securities Sdn Bhd served as the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise. – BERNAMA
