The company made a whopping 116.7% jump over its IPO price of 12 sen

by RUPINDER SINGH

DIGITAL healthcare solutions provider Sancy Bhd made its debut on the LEAP market of Bursa Malaysia at 26 sen per share, which represented a whopping 116.67% jump over its initial public offering (IPO) price of 12 sen.

With an opening price of 26 sen, the company has a market capitalisation of RM176.58 million. A total of 10,000 shares were traded at the opening bell.

The company has raised RM7.67 million via issuance of 78.6 million new shares prior to the IPO.

It will use the proceeds for its working capital, technology research and development activities among others, within 24 months from now.

Over the next year, Sancy targets to onboard approximately 100 hospitals in Malaysia into its Insurance Data Exchange and Analytical System (IDEAS) platform and to deliver double-digit growth for its financial year ending March 31, 2024.

Beyond 2024, Sancy is aiming for the overseas market to be its key growth contributor by leveraging the IDEAS platform.

The platform consists of an integrated data exchange middleware, which streamlines and automates claims processes through the Guarantee Letter (GL) between patients, healthcare providers and insurance providers.

Sancy’s group CEO Prabuddha Kumar Pronob Chakravertty expects the targeted double-digit growth for both top and bottom line in FY24 to mainly come from its IDEAS platform and Hospital Information System, while its business processing operations and maintenance business segments will provide the remainder of the contributions to Sancy’s growth.

For this year specifically, Sancy intends to expand its presence in Malaysia by reaching out to more healthcare providers and insurance providers.

Sancy sees the potential of penetrating into the insurance GL processing industry in Malaysia.

“For now, we are in negotiations with more than five entities, including insurance providers and healthcare providers, to attract them into adopting the IDEAS platform. We are confident to secure at least some, if not all, of them to be our new customers and we are looking to commence the onboarding procedures by the second quarter of 2023,” said Prabuddha.

Currently, he said Sancy already has healthcare providers from countries in Pakistan, Thailand, the Philippines, India, Bangladesh and Senegal onboarding the IDEAS platform and Hospital Information System.

“These customers are expected to start contributing significantly to our financial performance in FY25,” he said.

For now, nearly 100% of Sancy’s revenues are derived from Malaysia, although some of its existing customers are incorporated outside of Malaysia. To date, it serves 27 customers in total.

As part of the listing exercise, Sancy has secured Tan Sri Shahril Shamsuddin, and his vehicle, Sapura Capital Sdn Bhd as its strategic shareholders. Collectively, their total investment is RM13.27 million for a 20.25% stake. Shahril is also serving as non-executive chairman of Sancy.

Meanwhile, Prabuddha via his holdings in Sancy Consulting Sdn Bhd and Sancy Holdings Sdn Bhd indirectly controls 68% of Sancy post listing.

Financial-wise, in FY22, Sancy delivered a net profit of RM959,000 on the back of RM4.3 million in revenue.

The listing price of 12 sen per share was determined based on the implied price-earnings multiplier of approximately 24.5 times based on the average profit guarantee per annum of RM3.33 million (total of RM10 million profit guarantee undertaken by the promoters for the FY23, FY24 and FY25).

Formed in 2017, Sancy is principally involved in the provision of digital healthcare solutions and other non-clinical information management systems and related services.

It also provides total hospital information system solutions, business processing operations and maintenance services, as well as non-clinical solutions.

Sancy counts hospitals such as the Pantai Group and an international private healthcare company incorporated in Malaysia with regional presence across Asia as its clients.

Sancy has a total issued share capital of 679.17 million shares upon this listing, giving it a market cap of RM81.5 million based on the listing reference price of 12 sen.

Astramina Advisory Sdn Bhd is the approved advisor and continuing advisor for the listing.