Cengild Medical to raise RM72.2m from IPO

The healthcare provider seeks to be listed on April 18 

by TMR / pic source: cengild.com

CENGILD Medical Bhd, which is seeking a listing on the ACE Market of Bursa Malaysia Securities, aims to raise up to RM72.2 million through its IPO of 218.8 million shares offered at 33 sen a share. 

The healthcare provider, which specialises in the diagnosis and treatment of gastrointestinal and liver diseases, and obesity, has launched its prospectus and IPO applications will close on April 5, 2022. The counter seeks to be listed on April 18. 

Cengild would be the seventh listing on Bursa Malaysia in 2022 and the fourth listing year-to-date on the ACE Market after Pappa Jack Bhd which is set to be listed on April 1. 

At 33 sen a share, Cengild will have a market capitalisation of some RM270.2 million ahead of its debut. 

The IPO exercise sees 162.86 million shares offered to institutional and selected investors, while 40.94 million shares will be made available to the Malaysian public. 

The company, in a release yesterday, stated that RM13 million of the proceeds raised will be utilised for the expansion of its existing medical centre at Nexus@Bangsar South, Kuala Lumpur. 

The company plans to lease about 12,000 sq ft to 15,000 sq ft of space to cater to current and future demand for its medical services, especially endoscopic procedures. 

Some RM37.1 million of the RM72.2 million will be used to establish two new full-fledged medical centres specialising in gastrointestinal and liver diseases, and obesity in cities like Johor Baru, Penang or Ipoh. 

Another RM17.4 million will be set aside for working capital purposes. 

“Over the past four-and-a-half years, we have had 67,000 patient visits at our medical centre, and performed more than 21,000 endoscopic procedures and more than 3,500 surgeries. 

“From financial year 2018-2021, our revenue grew from RM11.68 million to RM63.47 million, representing a compound annual growth rate of 75.81%. The growth is attributed to an increase in revenue in both our consultant services and medical management services,” Cengild’s executive chairman Datuk Dr Tan Huck Joohe stated in the release. 

He expects demand for healthcare services to continue to rise driven by the growing and ageing population, increasing affluence and health awareness in Malaysia’s advancing society.