KUALA LUMPUR: Fertility care specialist Alpha IVF Group Bhd aims to raise RM466.5 million from its initial public offering (IPO) as it heads towards listing on the ACE Market of Bursa Malaysia on March 22.
The IPO entails a total of 1.45 billion shares in Alpha IF priced at 32 sen per share, comprising 364.5 million new shares and 1.09 million offer-for-sale shares from eight offerors, the company said in a statement today.
Of the targeted RM466.5 million IPO proceeds, RM116.6 million will be accrued to Alpha IVF, while the balance 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 its expansion plan domestically and internationally.
A further RM15.7 million will be allocated for expansion and upgrade of existing specialist centres, facilities, and corporate office, RM2.2 million for research and development (R&D), as well as the remaining RM25.9 million for general working capital, general corporate purposes and defraying of listing expenses.
Group managing director Datuk Colin Lee Soon So said since its inception, Alpha IVF has experienced remarkable growth, evolving from 11 staff to its current team of more than 140 staff.
He added that from a single centre, the company has 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 around the world.
"Through this IPO, we are looking to raise RM116.6 million in total proceeds for Alpha IVF Group, which will help to support our capital expenditure and working capital requirements for future growth.
"The first pillar of our growth strategy is focused on domestic expansion, as we aim to establish three full-fledged fertility centres in Malaysia by the financial year ending May 31, 2026," he noted.
Additionally, Lee also said the company intend to expand internationally by setting up additional IVF specialists centre and four satellite clinics in Indonesia.
He said the four satellite clinics will be set-up in various cities in Indonesia as an extension of our specialist centre.
"In addition, we plan to expand our reach by setting up another specialist centre elsewhere in Southeast Asia and two sales representative offices in China.
"We also plan to expand R&D initiatives focused on technology and procedures to improve our pregnancy success rates.
"This includes expanding our R&D team and purchasing laboratory equipment to aid in R&D," he noted.
Looking ahead, the company said it expects a surge in demand for IVF, driven by increasing trend of starting a family late and by government IVF incentives.
It said the company's expansion aligns perfectly with the current landscape, allowing it to capitalise on these opportunities."
"The confidence of Alpha IVF Group'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," it added.
AmInvestment Bank Bhd serves as the principal adviser, sponsor, lead bookrunner, and sole underwriter for the group's IPO exercise.
Application for the IPO will be available starting today and will be closed on March 8 at 5pm.