LAC Med Berhad IPO: In-Depth Analysis, Financials, and Investor Outlook

Malaysia’s healthcare technology sector is set for a milestone as LAC Med Berhad launches its highly anticipated IPO. This comprehensive analysis covers every material aspect, from offer structure and financials to risks and growth strategy, arming investors and analysts with all critical details for informed decision-making.

IPO Snapshot: Key Offer Terms and Structure

LAC Med Berhad is offering its ordinary shares for listing on the Main Market of Bursa Malaysia Securities Berhad. The IPO symbol is not explicitly stated in the document. The offering price is RM0.75 per share.

Use of proceeds is clearly growth-driven, with a significant allocation to capital expenditure and expansion:

• Setting up new head office and warehouse: RM12 million
• Expansion in Indonesia: RM8 million
• Establishment of equipment-as-a-service (EaaS) and asset management: RM8 million
• Repayment of borrowings: RM16 million
• Working capital: RM6.15 million
• Estimated listing expenses: RM5.5 million

This allocation signals a focus on business expansion and operational scaling, with prudent deleveraging [[71]].

Placement and Issuance Breakdown

The IPO is structured as follows:

• Public Issue (74,197,600 new shares):
  • Malaysian Public: 20,000,000 shares (5.0% of enlarged capital), 50% for Bumiputera investors
  • Eligible Persons (directors, employees, contributors): 4,197,600 shares (1.0%)
  • Private Placement (Bumiputera investors approved by MITI): 50,000,000 shares (12.5%)
• Offer for Sale (30,000,000 shares): Existing shareholders (Liew Yoon Poh, Liew Yoon Kit, Giam Teck Eng)

Dividend Policy and Commitment

The Board intends to recommend and distribute dividends of at least 30% of annual audited PAT attributable to shareholders. Actual dividends depend on regulations, working capital, cash flow, and capex requirements. As an investment holding company, dividends depend on payouts from subsidiaries. No guarantee of dividends; subject to Board discretion and future financial performance [[58]].

Investor Participation and Book Quality

Institutional and anchor investors’ names, as well as oversubscription rates by tranche, are not disclosed. The retail offering is open to the Malaysian public and eligible persons, while the private placement tranche is reserved for Bumiputera investors approved by MITI.

There is no explicit mention of pre-listing disposals by early shareholders beyond the Offer for Sale. The deal structure — with a sizable allocation to public and Bumiputera investors — suggests a deliberate effort to ensure broad market participation and liquidity upon listing.

Deal Parties and Offer Structure

• Principal Adviser, Joint Underwriter, Sole Placement Agent: RHB Investment Bank
• Solicitors: Ong Eu Jin Partnership
• Auditors/Reporting Accountants: Crowe Malaysia PLT
• Independent Business and Market Research Consultants: Vital Factor Consulting Sdn Bhd

No stabilization, over-allotment, or greenshoe details are disclosed. The presence of a leading Malaysian investment bank as adviser and underwriter, along with prominent legal and audit firms, underlines a robust offering structure.

Company Overview: Business Model, Revenue Streams, and Market Position

LAC Med Berhad is a healthcare technology solutions provider specializing in:

• Supply and integration of medical devices
• Medical equipment and software solutions
• Equipment-as-a-service (EaaS)
• Provision of maintenance services
• Medical consumables and related products

Key customer segments: Public and private hospitals, clinics, and medical centers in Malaysia and Indonesia. The company is expanding into Indonesia through PT Fairmed, incorporated December 2024 [[42]].

Revenue streams:

• Medical device/equipment sales and integration
• Software and system provision
• Ongoing maintenance contracts
• Consumable sales

The company’s order book as at the latest practicable date is RM184.6 million, with a strong pipeline across device supply, software, and services [[57]].

Financial Health: Revenue, Margins, Cash Flow, and Balance Sheet

LAC Med Berhad has demonstrated robust growth and profitability over recent periods, with improving margins and strong cash generation.

As at 30 June 2025, LAC Med Berhad had RM16.5 million in cash and bank balances, working capital of RM47.3 million, and a total indebtedness of RM23.07 million (to be reduced to RM7.07 million post-IPO) [[24]], [[46]], [[52]].

Market Position and Competitive Advantages

LAC Med Berhad is positioned as a leading provider of medical device solutions in Malaysia, with a strong and growing presence in Indonesia. The group’s diversified revenue streams, robust order book, and expansion into EaaS and asset management services underpin its competitive edge. The company leverages relationships with both public and private healthcare providers and is actively investing in technology and regional presence.

Trends, Timing, and Market Environment

The company operates in a resilient sector benefiting from rising healthcare investment, digitalization, and increased demand for advanced medical devices and IT solutions. Recent order book growth and expansion activities suggest strong demand continuation.

The IPO application window opens at 10:00 a.m. on 14 November 2025 and closes at 5:00 p.m. on 25 November 2025 [[189]]. Market sentiment, as described in the prospectus, has not been adversely affected by any unusual or infrequent events, and operating trends remain favorable [[58]].

Risk Factors

The main risks highlighted include:

• No prior public market for shares: Uncertainty over active trading and liquidity post-listing; potential for shares to trade below IPO price [[7]].
• Market price volatility: Subject to fluctuations due to financial results, management changes, analyst views, sector sentiment, litigation, or macro events [[8]].
• Concentration of control: Substantial shareholders will own 72.2% of shares post-IPO, potentially influencing major decisions [[8]].
• Listing risks: If minimum public spread or regulatory approvals are not met, listing may be delayed or aborted, with all application monies refunded [[9]].
• Dividend uncertainty: Dividends are not guaranteed and depend on future performance and Board discretion [[10]].
• Forward-looking statements: Subject to economic, regulatory, and competitive uncertainties [[10]].

Other risks include exposure to economic downturns, regulatory changes, COVID-19 impacts, and project execution challenges.

Growth Strategy

LAC Med Berhad is aggressively pursuing regional expansion, innovation, and service diversification:

• Capital expenditure plans: RM12 million for new head office and warehouse, RM8 million for Indonesian branch offices, RM8 million for EaaS and asset management expansion [[71]].
• Market expansion: Recent incorporation of PT Fairmed in Indonesia, personnel ramp-up from 80 to 110 employees as at June 2025 [[42]].
• Product/service innovation: Launching new contracts in EaaS segment and expanding into software solutions for hospitals [[13]].
• Order book visibility: RM184.6 million in outstanding orders, spanning multiple years and service lines [[57]].

Ownership Structure and Lock-ups

Pre-IPO and post-IPO shareholding structure:

• Total shares post-IPO: 400,000,000
• Substantial shareholders (Liew Yoon Poh, Liew Yoon Kit, Giam Teck Eng, Chan Yue Mun): Will collectively own 72.2% post-listing [[8]], [[65]]
• Public float: 26% post-IPO
• Offer for Sale: 30,000,000 existing shares by major shareholders [[70]]

No explicit ESOP or lock-in details are disclosed beyond the public issue and eligible person allocations.

Valuation and Peer Comparison

No P/E, P/B, EV/EBITDA, or peer comparison data is provided in the prospectus. No sector comparables, sector performance, or recent peer IPO details are disclosed.

Research Coverage and Opinions

No analyst coverage, price targets, or explicit research opinions are included in the prospectus.

IPO Allotment Results

Final subscription outcomes by tranche are not disclosed. In the event of oversubscription, allocation will be determined by ballot, with the basis of allocation and results published on the AscendServ Capital Markets Services website within one Market Day after balloting [[193]].

Listing Outlook: Investor Takeaways and Expected Trading Performance

Based solely on disclosed facts, LAC Med Berhad’s IPO offers investors exposure to a high-growth, profitable healthcare solutions provider with a robust order book and expansion momentum in Southeast Asia.

• Strong financials, healthy margins, and clear regional growth strategy underpin the investment case.
• Risks center on market liquidity, dividend uncertainty, and concentrated shareholder control, but the diversified offering structure and high public float are positives.
• Book quality and demand indicators are not disclosed; however, broad retail and institutional allocations, strong order book, and growth-focused use of proceeds suggest favorable debut potential.

Based on all disclosed factors, the IPO appears attractive for growth-oriented investors, with the likelihood of first-day trading strength relative to the offer price, especially if sector sentiment and market liquidity remain supportive.

Where to Access the Prospectus

For full details, the prospectus can be accessed at the Bursa Malaysia website: www.bursamalaysia.com

How to Apply for the IPO

Application channels: Application forms (white for public, pink for eligible persons), electronic share application, or internet share application through participating financial institutions and securities firms. Application period runs from 10:00 a.m. on 14 November 2025 to 5:00 p.m. on 25 November 2025. The minimum application is 100 shares, and payment is RM0.75 per share. Applications can be submitted by post, hand delivery, or electronically, as per detailed instructions in the prospectus [[189]], [[191]].