PETALING JAYA: Healthcare service provider Cengild Medical Bhd made its debut on the ACE Market of Bursa Malaysia today with a 54.55% premium, opening at 49.5 sen per share, 16.5 sen higher than the initial public offering (IPO) price of 33 sen.
The stock, which saw 98.81 million shares traded, was the most actively traded stock this morning.
At 43.5 sen, the counter was valued at RM356.18 million.
Cengild Medical’s IPO attracted strong interest, with the offering to the Malaysian public being oversubscribed by 44.53 times.
“The private healthcare services market in Malaysia is anticipated to grow steadily at a CAGR of 9.6% from 2022 to 2026, underpinned by overall population growth, ageing population and increasing incidence of non-communicable diseases,“ it said in a statement.
About RM72.2 million was raised from this IPO where RM13 million will be utilised for the expansion of its existing medical centre at Nexus @ Bangsar South, Kuala Lumpur, by leasing additional space of 12,000 to 15,000 sq ft to cater to current and future demand for its medical services.
A total of RM37.1 million will be utilised for geographical expansion by establishing two new full-fledged medical centres specialising in gastrointestinal and liver diseases, and obesity in other major cities in Malaysia, such as Johor Bahru, Penang and Ipoh.
About RM17.4 million has been set aside for working capital purposes and the remaining proceeds of RM4.7 million will be for defrayment of listing expenses.
Cengild Medical executive chairman Datuk Dr Tan Huck Joo said the IPO has provided the company with the platform to realise its ambitions and accelerate its expansion plans.
“As the only independent full-fledged medical centre in Malaysia specialising in gastrointestinal and liver diseases, and obesity, our aim is not only to provide the best treatment for our patients but also to build a reputable centre of excellence in the region.
“The team at Cengild has achieved impressive results in the past and with the expansion post-IPO, I’m confident we will reach even greater heights in the future. This is just the beginning of a new journey for us, and we look forward to building more successes in the years to come,” Tan said.
Hong Leong Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole bookrunner for Cengild Medical’s IPO.
