Newly-listed Alpha IVF eyes global Muslim market
KUALA LUMPUR: ACE Market debutant Alpha IVF Group Bhd aims to penetrate the domestic and international Muslim market segment with its fourth specialist centre, Alhaya IVF and Women’s Specialists–KL (Alhaya– KL), which is set to commence operation soon.
Collaborating with KPJ Group – Alhaya-KL will be attached to KPJ Damansara Specialist Hospital 2 – group managing director Datuk Dr Colin Lee said the company aims to leverage KPJ’s position as a leading healthcare provider in Malaysia to reach KPJ’s strong customer base of Muslim patients.
“The strategic approach will allow us to effectively target the substantial Muslim market segment locally and internationally, which will underpin one of our key prongs of growth,” he told a press conference after the listing ceremony yesterday.
The fertility care specialist’s share price opened flat at 32 sen with 12.99 million shares changing hands with a market capitalisation of RM1.56 billion and an enlarged share capital of 4.86 billion shares.
Lee said the company aims to tap into KPJ’s predominantly Muslim clientele and proactive stance on medical tourism and promote its in-vitro fertilisation (IVF) treatment services in Indonesia and the Middle East.
He said demand for IVF treatment in Southeast Asia is experiencing a notable surge, fueled by shifting societal norms, declining birth rates, and an increasing need for fertility assistance among couples.
In Malaysia for example, he said the estimated demand exceeds 40,000 IVF cycles per annum, while only around 9,000 cycles are performed annually. The demand in Indonesia is estimated at 400,000 cycles per annum but the supply falls far short of that.
With Malaysia being ranked among the top medical tourism destinations in the region, he said the company aims to attract Muslim couples who want to start a family.
Meanwhile, in a statement, Alpha IVF said in addition to Alhaya–KL, the group also plans to use part of the initial public offering (IPO) proceeds to set up two more IVF specialist centres in Malaysia, and is currently in the process of finding suitable locations.
“One centre is expected to be completed by the end of the financial year ending May 31, 2025, and another by the end of the financial year ending May 31, 2026, the statement said.
As for its regional expansion, the group intends to expand its geographical footprint by establishing one specialist centre and four satellite clinics in Indonesia, the statement said.
“Moreover, Alpha IVF Group aims to further extend its reach by establishing another specialist centre elsewhere in Southeast Asia and opening two sales representative offices in China,” it added.
Setting an issue price of 32 sen apiece, the overall value of Alpha IVF’s IPO is worth RM466.6 million with the group receiving RM116.6 million and the offerors the remaining RM349.9 million.
AmInvestment Bank Bhd is the principal adviser, sponsor, lead bookrunner, and sole underwriter for the IPO.