Alpha IVF Group’s IPO shares oversubscribed 2.73 times

KUALA LUMPUR: ACE Marketbound Alpha IVF Group Bhd’s 194.4 million initial public offering (IPO) shares available for public application have been oversubscribed by 2.73 times.

A total of 6,894 applications for 530.1 million shares worth RM169.6 million were received from the Malaysian public for the IPO shares, the fertility care specialist firm said in a statement.

Meanwhile, institutional offering of 1.24 billion shares comprising 1.09 billion offers shares and 145.8 million issue shares made available to institutional and selected investors including MITI-approved bumiputera investors, has been fully subscribed by 3.14 times.

It said the overall value of the IPO deal is worth RM466.6 million, with Alpha IVF Group receiving RM116.6 million and the offerers receiving the remaining RM349.9 million.

Out of the total proceeds of RM116.6 million, RM72.8 million will be utilised to develop new in-vitro fertilisation (IVF) centres, satellite clinics, and sales representative offices as part of the company’s expansion strategy.

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, as well as the remaining RM25.9 million for general working capital and listing expenses.

“We are still primarily focused on growing our group locally and internationally.

We have high hopes for our capacity to fulfil the increasing demand for IVF services, particularly as more overseas patients visit our centres for treatment,” said group managing director Datuk Dr Colin Lee Soon Soo.

Alpha IVF Group is slated for listing on the ACE Market of Bursa Malaysia on March 22, 2024.

AmInvestment Bank Bhd serves as the principal adviser, sponsor, lead bookrunner and sole underwriter for the group’s IPO exercise.