Cengild Medical closes at premium on ACE Market debut

It raises RM72m from the sale of 218.8m new shares 

By TMR / Pic credit: Cengild.com

HEALTHCARE service provider Cengild Medical Bhd made a sterling debut on the ACE Market of Bursa Malaysia on Monday, with its share price closing at 46.5 sen a share, or a 40.9% premium over its IPO price of 33 sen. 

The counter rallied by as much as 16.5 sen to 49.5 sen at the opening before testing a low of 42 sen a share in active trade ahead of the holiday yesterday. 

Cengild Medical raised RM72.2 million from the sale of 218.8 million new shares. 

Of the total proceeds, RM13 million will be utilised for the expansion of its existing medical centre at Nexus@Bangsar South, in Kuala Lumpur, by leasing additional space between 12,000 sq ft to 15,000 sq ft to cater to current and future demand for its medical services. 

The private healthcare services market in Malaysia is anticipated to grow steadily at a compound annual growth rate of 9.6% from 2022 to 2026, underpinned by overall population growth, ageing population and increasing incidence of non-communicable diseases. 

Some RM37.1 million of the money raised 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 such as Johor Baru, Penang or Ipoh. 

Another RM17.4 million has been set aside for working capital purposes and the remaining proceeds of RM4.7 million will be used to defray listing expenses. 

“Cengild Medical has travelled through a remarkable journey since October 2017 and this IPO has provided us with the platform to realise our ambitions and accelerate our expansion plans. As the only independent full-fledged medical centre in Malaysia specialising in gastrointestinal, 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. 

“This is just the beginning of a new journey for us, and we look forward to building more successes in the years to come,” executive chairman Datuk Dr Tan Huck Joo stated in a release on Monday. 

Cengild Medical is the seventh listing on Bursa Malaysia this year and the fourth listing on the ACE Market. 

All the IPO have closed at a premium on their maiden trading day except for Senheng New Retail Bhd which 20.1% discount on its offer price of RM1.07 a share.