KUALA LUMPUR: ACE Market=bound DC Healthcare Holdings Bhd intends to raise RM49.81 million from its initial public offering (IPO) to fund its growth plans.
In conjunction with the release of its IPO prospectus, the aesthetic medical services provider announced that RM9.44 million of the proceeds will go towards establishing aesthetic medicine clinics and RM13.12 million towards the purchase of medical machinery and equipment .
RM6.24 million will be used to repay loans, while RM17.01 will be used for working capital including employee salaries, medical supplies and consumables.
The remaining RM 4 million will be used for listing costs.
“DC Healthcare’s expansion plan is based on the demand for aesthetic medical services as people become more conscious of skin health and, above all, want to feel and look good for the long term.
“Aesthetic medical services and general medical services related to skin diseases are predicted to increase as people have more disposable income for free spending and better knowledge about skin diseases,” said Managing Director Dr. Chong Tze Sheng.
Meanwhile, Danny Wong, deputy head of corporate finance at M&A Securities Sdn Bhd, said the growing acceptance of aesthetic medical services will lead to a projected domestic CAGR of 18.8% from 2021 to 2027, bringing the total market value to RM1.03 billion is equivalent to.
DC Healthcare, popularly known as Dr Chong Clinic or Dr Chong Clinic, provides aesthetic services, general medical services and skin care product sales.
The company said it currently has 13 clinics and 10 LCP-certified aesthetic doctors supported by 29 resident doctors in the central and southern regions of Peninsular Malaysia, namely in Negeri Sembilan, Selangor, Johor and Kuala Lumpur.
For the fiscal year ended December 31, 2022, the Group reported revenues of RM51.96 million compared to RM25.48 million in fiscal 21, with a net profit margin of 18.4% and 18.06%, respectively.
Aesthetic services contributed 89.96% of total revenue in FY22 and 84.88% in FY21, compared to general medical services which contributed 10.04% in FY22 and 15.12% in FY21.
In addition, DC Healthcare reported revenues of RM14.45 million and RM12.21 million for the fiscal years ended December 31, 2020 and December 31, 2019, respectively.
Aesthetic services contributed 89.80% in FY19 and 87.5% in FY20 to total sales, while general medical services contributed 10.2% in FY2019 and 12.5% in FY20.
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