KUALA LUMPUR, 27 JUNE 2023 – DC Healthcare Holdings Berhad (“DC Healthcare” or the “Group”), an established aesthetic medical services provider specialising in the provision of non-invasive and minimally invasive procedures, launched the prospectus today in conjunction with the Group’s initial public offering (“IPO”) on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
The IPO with its initial public offering (IPO) at 25 sen per share with the aim of raising RM49.81 million for working capital and repayment of borrowings. At 25 sen per share, DC Healthcare is valued at 26.04 times price earnings based on its profit after tax of RM9.56 million for the financial year ended Dec 31, 2022.
Its share capital will be enlarged to 996.3 million shares under its flotation exercise and it is expected to have a market capitalisation of RM249.08 million upon listing, which is scheduled for July 17.
- RM9.44 million to establish aesthetic medical clinics
- RM13.12 million to purchase medical machinery and equipment
- RM6.24 million to repay borrowings
- RM17.01 million for working capital, including staff salaries as well as medical supplies and consumables
- RM4.00 million for estimated listing expenses
Managing Director of DC Healthcare, Dr. Chong Tze Sheng said, “DC Healthcare’s expansion plan is based on demand for aesthetic medical services as people are becoming more aware on skin health, as well as wanting to look and feel good about themselves, especially in the long run. It is projected that aesthetic medical services and general medical services related to skin disease will increase due to people having more disposable income for discretionary spending and becoming better educated on skin conditions.”
Mr. Danny Wong, Deputy Head of Corporate Finance, of M&A Securities Sdn Bhd said, “The Malaysian market for aesthetic medical services will continue to grow supported by demand as incomes rise and populations aged. This will be helped along by the increased consumerism and growing influence of social media removing the stigma of aesthetic medical procedures. With the growing acceptance of such treatments, the domestic aesthetic medical services market is projected to have a compound annual growth rate of 18.8% from 2021 to 2027 valuing the total market at RM1.03 billion.”
DC Healthcare – or famously known ‘Dr. Chong Clinic’ or ‘Klinik Dr. Chong’ – provides aesthetic services, general medical services and sale of skincare products. DC Healthcare currently has 13 clinics and 10 LCP Certified Aesthetic Physicians, assisted by 29 resident medical doctors in the central and southern regions of Peninsular Malaysia namely in Negeri Sembilan, Selangor, Johor, and Kuala Lumpur.
For the financial year ended 31 December 2022 (“FYE2022”), the Group recorded revenue of RM51.96 million compared with RM25.48 million in FYE2021 with a net profit margin of 18.40% and 18.06% respectively.
Aesthetic services contributed 89.96% to total revenue for FYE2022 and 84.88% in FYE2021, compared to general medical services who contributed 10.04% in FYE2022 and 15.12% in FYE2021.
In addition, for the financial year ended 31 December 2020 (“FYE2020”) and 31 December 2019 (“FYE2019”), DC Healthcare registered revenue RM14.45 million and RM12.21 million respectively. Aesthetic services contributed 89.80% in FYE2019 and 87.50% in FYE2020 to the total revenue, while general medical services contributed 10.20% in FYE2019 and 12.50% in FYE2020.
According to DC Healthcare’s prospectus, the group does not have a formal dividend policy.
For its financial year ended 2022 (FY2022), its profit after tax (PAT) was RM9.6 million against RM4.6 million in FY2021. In the two preceeding years FY2020 and RY2019, its PAT was RM1.9 million and RM1.2 million, respectively.
Revenue for FY2022 amounted to RM52 million, more than double the RM25.5 million made in FY2021. For FY2020, it was RM14.4 million, slightly up from RM12.2 million in FY2019. M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
