Thursday 28 Mar 2024
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KUALA LUMPUR (April 18): Healthcare service provider Cengild Medical Bhd debuted on the ACE Market of Bursa Malaysia on Monday (April 18), surging to a high of 51 sen, an 18 sen or 54.55% premium over its initial public offering (IPO) price of 33 sen.

The counter opened up 16.5 sen at 49.5 sen on Monday. At market close, it settled at 46.5 sen, still up 13.5 sen or 40.91% from its IPO price.

The stock, which saw 162.81 million shares done, was the second most actively traded stock of the day.

At 49.5 sen, the counter was valued at RM380.74 million.

The group earlier said it aimed to raise up to RM72 million from its IPO with 218.8 million new shares.

Of the proceeds, it intends to use RM37.1 million to establish new medical centres, RM17.4 million for working capital, RM13 million for expansion of existing medical centres and the remaining RM4.7 million for listing expenses.

The group plans to expand its existing medical centre at Nexus @ Bangsar South, Kuala Lumpur, by leasing additional space of approximately 12,000 to 15,000 square feet to cater to current and future demand for its medical services, especially endoscopic procedures to strengthen its position in the segment.

It also intends to expand its presence by establishing two new full-fledged medical centres specialising in gastrointestinal and liver diseases, and obesity in other major cities in Malaysia such as Johor Bahru, Penang or Ipoh.

In order to support the expansion of its existing medical centre as well as into other major cities in Malaysia, it also intends to strengthen its medical team by attracting and recruiting consultants specialising in gastroenterology and hepatology.

Meanwhile, according to the group’s filing on March 30, its net profit for the second quarter ended Dec 31, 2021 (2QFY22) declined by 13.8% to RM2.44 million from RM2.83 million a year ago, mainly due to listing expenses, and slightly lower margin due to promotional offer for certain surgical procedures and higher nursing staff costs.

Its revenue for the quarter, however, increased by 4.06% year-on-year to RM16.83 million from RM16.17 million, due to higher number of patients, and number of endoscopic procedures and surgeries performed.

For the six months ended Dec 31, 2021, the group’s net profit fell by 31.02% to RM3.81 million from RM5.52 million in the year-ago period while revenue declined slightly by 0.5% to RM31.51 million from RM31.67 million.

Given the performance of the group during the financial year ended June 30, 2021 (FY21) and the financial period ended Dec 31, 2021, the board of directors expects the group to achieve satisfactory financial performance for FY22.

Edited BySurin Murugiah
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