TOPVISION IPO
TOPVISION provides medical eye care services through 11 ambulatory care centers (ACCs) across Peninsular Malaysia, with plans to establish additional centers in Selangor, Terengganu, and Sabah.
The Malaysian medical eye care industry is projected to grow at a compound annual growth rate (CAGR) of 10%, increasing from RM849.5 million in 2024 to RM1.25 billion by 2028.
TOPVISION has an established brand and market presence, offering an extensive range of medical eye care services.
Management Team:
Chief Executive Officer and Executive Director: Dr. Peter Chong Kuok Siong
Executive Vice Chairman: Datuk Kenny Liew Hock Nean
Details:
TOPVISION is transitioning its listing from the LEAP Market to the ACE Market of Bursa Malaysia, aiming to raise RM17.89 million through the public offering.
Placement Amount: The IPO aims to raise RM17.89 million through the issuance of new shares.
Number of Outstanding Shares: Post-IPO, the total number of outstanding shares is projected to be approximately 140 million shares.
Performance Likelihood: The relatively moderate IPO size aligns with the company’s growth plans and market positioning, which should ensure sustained investor interest.
IPO Details
Purpose of IPO: The company plans to allocate the proceeds as follows:
RM7.9 million for establishing the Topvision International Eye Specialist Centre in the Klang Valley.
RM5 million for expanding its ACC network with new centers in Kuala Terengganu and Tawau, Sabah.
RM0.5 million for purchasing medical equipment.
RM4.5 million for listing expenses.
Risk Factors:
Dependence on key medical professionals.
Regulatory changes in the healthcare sector.
Competition from other eye care service providers.
Growth Strategy:
Expanding the network of ACCs to increase market reach.
Enhancing service offerings to cater to a broader patient base.
Peer Comparison
TOPVISION Eye Specialist
P/E Ratio21.2x
Optimax Holdings Berhad:
Price movement: +3.5% over the last 10 days, driven by positive sentiment in healthcare services.
ISEC Healthcare Ltd:
Price movement: +4.2% over the last 10 days, reflecting increased demand for specialized eye care services.
KPJ Healthcare Berhad:
Price movement: +2.8% over the last 10 days, supported by strong fundamentals and sector growth.
You can download the prospectus for TOPVISION Eye Specialist Berhad from:
https://www.bursamalaysia.com/
Principal Adviser, Sponsor, Sole Underwriter, and Sole Bookrunner: Hong Leong Investment Bank Berhad
The medical eye care industry in Malaysia is growing at a 10% CAGR, driven by an aging population and increasing prevalence of eye-related issues.
Established Market Presence: TOPVISION has a strong foothold in the eye care market, with plans for expansion that could further solidify its position.
Strategic Use of Funds: Proceeds are earmarked for expanding the ACC network and enhancing medical capabilities, directly supporting growth initiatives.
TA Research has evaluated TOPVISION’s IPO, noting that at the issue price of RM0.33 per share, the company is valued at a trailing P/E ratio of 21.2x based on FY2023 earnings per share. They have assigned a target P/E of 22.0x on projected FY2025 earnings, resulting in a fair value estimate of RM0.39 per share.
Valuation: At RM0.33 per share and a P/E of 21.2x, the IPO is attractively priced compared to sector peers.
Based on strong sector fundamentals, reasonable pricing, and projected growth, the stock is likely to trade strongly above the IPO price on its first day.
First-Day Trading Estimate: Expected Price Range: RM0.36 to RM0.42
Final Recommendation: Worth Subscribing for both short-term gains and long-term investment, especially for those looking to capitalize on Malaysia’s growing healthcare sector.
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