PETALING JAYA: Healthcare provider Cengild Medical Bhd seeks to raise up to RM72.2 million from its listing on the ACE Market of Bursa Malaysia Securities.
Cengild Medical’s value proposition lies in its position as the only independent medical centre in Malaysia specialising in gastrointestinal and liver diseases, and obesity.
Cengild Medical’s prospectus launch today marked the opening of applications for its initial public offering (IPO) of 218.80 million shares. At a retail price of 33 sen per share, Cengild Medical will have a market capitalisation of up to RM270.2 million upon listing.
The IPO involves a total of 218.8 million shares of which 162.86 million shares will be offered via book building to institutional and selected investors, 40.94 million shares via balloting to the public, and 15 million shares to eligible directors, key senior management, employees and persons who have contributed to the group. The IPO applications will close on April 5, 2022, and the listing date is targeted for April 18, 2022.
The company plans to use RM13 million of the gross proceeds to expand its 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, especially endoscopic procedures. At the same time, RM37.1 million will be used for geographical expansion by establishing two medical centres in other major cities in Malaysia. RM17.4 million for working capital purposes and the remaining RM4.7 million for defrayment of listing expenses.
Executive chairman Datuk Dr Tan Huck Joo said Cengild Medical was established in October 2017 with the vision to build a centre of excellence for gastrointestinal and liver diseases and obesity in Malaysia.
“We aim to provide dedicated medical care through skilled expertise of our specialist consultants in a one-stop tertiary care centre,” he said, adding that the consultants have contributed to high-quality care while also ensuring continued growth and success of the medical centre.
Over the past four and a half years, Cengild Medical has had 67,000 patient visits at the medical centre, performed more than 21,000 endoscopic procedures and more than 3,500 surgeries. From FY18 to FY21, Cengild Medical’s revenue grew from RM11.68 million to RM63.47 million, representing a compound annual growth rate of 75.81%, attributed to an increase in revenue in consultant services and medical management services.
Tan expects demand for healthcare services to continue increasing due to the growing and ageing population, increasing affluence and health awareness among Malaysians.
Cengild Medical’s existing 36,588 sq ft medical centre at Nexus Bangsar South is equipped with 10 clinics, three endoscopy rooms, 28 beds, treadmill stress test and echocardiography equipment, two operating theatres, accident and emergency department, pharmacy, laboratory and central sterile supply department. The operating theatres are equipped to perform procedures ranging from keyhole surgery to open surgery. Other facilities include a radiology department equipped with CT scanner, ultrasonography and fluoroscopy equipment.
Hong Leong Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole bookrunner for Cengild Medical’s IPO.
