Alpha IVF Group IPO to raise RM466.5 million
Fertility care specialist, Alpha IVF Group Berhad (Alpha IVF Group) and its subsidiaries aim to raise RM466.5 million from its Initial Public Offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Malaysia).
The IPO exercise entails a total of 1.458 billion ordinary shares in Alpha IVF priced at RM0.32 per share, comprising 364.5 million new shares and 1.093 billion offer-for-sale shares from eight offerors.
At the IPO prospectus launch, Alpha IVF Group executive director and group managing director, Datuk Dr Colin Lee Soon Soo stated that the IPO marked the initiation of a new phase in the group’s growth strategy. Lee said: “Through this IPO, we are looking to raise approximately 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 31 May 2026 (FYE 2026).
“Secondly, leveraging on our success and experience, we intend to expand internationally by setting up additional IVF specialists centre and four satellite clinics in Indonesia.
“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.
“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. The increase in R&D resources will certainly allow us to stay current with the latest developments in IVF and help with our business growth.”
With the prospectus launched, applications for Alpha IVF Group’s IPO will be accepted starting today and will close on March 8, 2024 at 5pm. Barring unforeseen circumstances, Alpha IVF Group is scheduled to list on the ACE Market of Bursa Malaysia on March 22, 2024.
AmInvestment Bank serves as the principal adviser, sponsor, lead bookrunner, and sole underwriter for the group’s IPO exercise.