This valuation represents a price-earnings (PE) multiple of 16 times the company’s projected earnings per share of 2.3 sen for the financial year ending on Dec 31, 2024 (FY2024).
The assigned value also represents a premium of 12 sen or 48% compared to the initial price offering (IPO) price of 25 sen per share.
The group intends to raise RM49.81 million through its IPO, which will involve the issuance of 199.26 million shares, equivalent to 20% of its enlarged issued share capital.
Out of the funds raised, RM17.01 million will be allocated for working capital purposes, while RM6.24 million will be used to repay existing borrowings.
Additionally, DC Healthcare plans to utilise RM9.44 million to establish eight new aesthetic clinics in Johor, Melaka, Negeri Sembilan, Penang, Perak, and Kedah.
Furthermore, RM13.12 million will be dedicated to the acquisition of medical machinery and equipment.
In its research note today, PIVB stated that it anticipates DC Healthcare’s net profit to achieve a compound annual growth rate (CAGR) of 53.3% over a two-year period, underpinned by higher demand for aesthetic services.
This projection assumes that the company will open three new clinics by the end of FY2023, followed by an additional five clinics in FY2024.
PIVB estimates that each branch will generate an average revenue of RM3.9 million.
“Moving forward, DC Healthcare plans to establish eight new aesthetic medical clinics in the next two years, mostly targeting the northern and southern regions of West Malaysia.
“(It) intends to remain focused on its aesthetic services by recruiting an additional six LCP physicians, 16 resident medical doctors, 56 clinic consultants and 16 administrative staff, with purchase of new medical machines and equipment for its existing and new aesthetic medical clinics,” said PIVB.
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