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PRIVATE healthcare provider, PMCK Bhd, is gearing up for its ACE Market debut on July 9 after drawing healthy investor interest for its IPO, particularly from retail participants.
The company, which operates Putra Medical Centre (PMC) Kulim and PMC Alor Setar in Kedah, saw the public tranche of its IPO oversubscribed by 1.87 times.
PMCK offered a total of 305.32 million shares — representing 28% of its enlarged capital — comprising 272.6 million new shares and 32.72 million shares offered for sale by existing shareholders.
At the close of applications, the group received 2,512 submissions from Malaysian investors for a combined 156.25 million shares, well above the 54.53 million shares earmarked for public subscription.
For the Bumiputera retail portion, 993 applications were received for 23.09 million shares, with the balance reallocated to the general pool in accordance with clawback provisions.
Meanwhile, demand from institutional and selected investors was robust. All 43.62 million shares designated for eligible persons were fully taken up. The placement to Bumiputera investors approved by the Ministry of
Investment, Trade and Industry (MITI) — amounting to 136.33 million shares — was also fully subscribed following clawback adjustments.
In addition, 38.12 million newly issued shares and 32.72 million existing shares were successfully placed out via private placement.
PMCK is expected to raise RM59.97 million in proceeds from the new share issuance, priced at 22 sen each.
The bulk of the funds, around RM50 million, will be used to repay bank borrowings linked to the company’s expansion.
Another RM5.3 million has been earmarked for the purchase of medical equipment for its Kulim facility, while the remaining proceeds will be used to cover listing-related costs.
Upon its listing, PMCK will have a market capitalisation of approximately RM239.93 million based on an enlarged share base of 1.09 billion shares.
This values the company at 15.94 times its earnings for the financial year ended April 30, 2024 (FY24).
Tradeview Research recently recommended a ‘Subscribe’ rating for the stock with a target price of 27 sen.
Its discounted cashflow valuation — using a terminal growth rate of 1.5% and a weighted average cost of capital (WACC) of 7.7% — reflects PMCK’s stable cashflows and conservative growth outlook.
The research house noted that PMCK is currently priced at an enterprise value-to-earnings before interest, taxes, depreciation and amortisation (Ebitda) of 9.3 times, compared to the 13-15 times range typical for sector peers, signalling a valuation discount.
This comes despite its dominant franchise in Kedah and a repeat patient rate exceeding 80%, which highlights its strong community presence and patient loyalty.
“We like PMCK for its focused primary and secondary care model… key growth drivers include the upcoming 12-storey PMC Kulim facility, affordable M40-focused services and rising private healthcare demand in underserved areas,” said Tradeview.
These, it added, help sustain stable margins and support a case for valuation re-rating.
Malacca Securities Sdn Bhd serves as the IPO’s principal advisor, sponsor, underwriter and placement agent. Public Investment Bank Bhd and Kenanga Investment Bank Bhd act as joint placement agents. — TMR
- This article first appeared in The Malaysian Reserve weekly print edition
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