IPO Series - Metro Healthcare Berhad - Paediatric and O&G Services 生育，产科和妇科服务

Figure 1: IPO timetable of METRO HEALTHCARE BERHAD
-Will be listed on the ACE Board

Info of IPO
Enlarged no. of shares upon listing: 978.905 million
IPO price: RM0.25
Market capitalization: RM244.72 million
Estimated funds to raise from Public Issue:  RM39.16 million
PE ratio = 39.16x (based on FY2023)
 

Figure 2: Business model of METRO HEALTHCARE BERHAD
Source: METRO HEALTHCARE BERHAD IPO prospectus

Figure 3: Utilisation of proceeds of METRO HEALTHCARE BERHAD
Source: METRO HEALTHCARE BERHAD IPO prospectus

Dividend Policy
-The group targets a dividend payout ratio of at least 20% of the PAT

Figure 5: Major customers and suppliers of METRO HEALTHCARE in FPE2024
Source: METRO HEALTHCARE BERHAD IPO prospectus
 

Figure 6: Profit & Loss statement of METRO HEALTHCARE BERHAD

Figure 7: Financial position of METRO HEALTHCARE BERHAD

Financial overview, industry market, and personal opinion
-The overview of the group’s financial position is poised to grow, with the total equity to total liabilities ratio of about 2, and the total assets have enlarged from RM50.238 million to RM57.886 million between FY2021 – FPE2024.
-Based on the marker research report, the industry size of Obstetrics and Gynaecology (O&G) has shown a CAGR of 14.2% from 2018 – 2023, signifying that the demand is anticipated to grow occasionally.
-Given the growing demand for O&G reasons, I agree with the researched data as lifestyle, disposable incomes, and food consumption habits have substantial differences from the last century.

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By: Jshen Ng