Alpha IVF targets raising Rm116mil in IPO

Fertility specialist plans regional expansion, more r&d

“Looking ahead, we see a surge in demand for IVF, driven by the increasing trend of starting a family late and by government IVF incentives.” Datuk Dr Colin Lee Soon Soo

Alpha IVF Group Bhd aims to raise Rm116.6mil from its initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia on March 22, 2024.

The fertility-care specialist’s IPO exercise entails the sale of 364.5 million new shares and 1.09 billion shares via an offer-for-sale by eight promoters. The shares are priced at 32 sen each.

Alpha IVF’S group executive director and managing director Datuk Dr Colin Lee Soon Soo said, of the proposed Rm116.6mil to be raised by the company, Rm72.8mil will be allocated to establish new in vitro fertilisation (IVF) centres, satellite clinics and sales representative offices as part of its expansion plan domestically and internationally.

A further Rm15.7mil will be allocated for the expansion and upgrading of existing specialist centres, facilities and its corporate office, while Rm2.2mil will be spent on research and development (R&D) and the remaining Rm25.9mil allocated for general working capital, general corporate purposes and defraying of listing expenses.

Lee said Alpha IVF’S first pillar of growth is focused on domestic expansion and the company aims to establish three fullfledged fertility centres in Malaysia by the financial year ending May 31, 2026 in addition to its three existing specialist centres – two in Malaysia and one in Singapore.

Established in 2011, Alpha IVF’S international expansion will include the setting up of additional IVF specialists centres and four satellite clinics in Indonesia.

Another specialist centre is being planned at another location in South-east Asia as well as two sales representative offices in China.

“We plan to expand our 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,” said Lee at the launch of the company’s IPO prospectus.

“Looking ahead, we see a surge in demand for IVF, driven by the increasing trend of starting a family late and by government IVF incentives. Our expansion aligns perfectly with the current landscape, allowing us to capitalise on these opportunities,” he added.

Alpha IVF’S retail offering will comprise 218.7 million new shares, with 194.4 million shares made available to the Malaysian public through ballotting.

Another 24.3 million shares will be allocated to eligible directors, employees, and individuals who have contributed to the success of Alpha IVF.

The institutional offering will comprise 1.24 billion shares, while 607.5 million shares are being offered to bumiputra investors approved by the Investment, Trade and Industry Ministry.

Applications for Alpha IVF Group’s IPO will close on March 8, at 5pm. Eight top-tier insurance funds and asset-management firms in Malaysia, Singapore and Hong Kong have agreed to be cornerstone investors in Alpha IVF’S IPO, Aminvestment Bank Bhd said in a statement yesterday.

The investment bank is the principal adviser, sponsor, lead bookrunner and sole underwriter for the IPO exercise.