KUALA LUMPUR, April 18 — Healthcare service provider Cengild Medical Bhd debuted on the ACE Market of Bursa Malaysia today and jumped to 43.5 sen at midday, a 10.5 sen premium over its initial public offering (IPO) price of 33 sen.

The counter rallied 16.5 sen to 49.5 sen at the opening, saw 119.76 million shares done throughout the morning session and remained the most actively traded stock.

Cengild said it raised RM72.2 million from its IPO with 218.8 million new shares.

Of the total proceeds, RM13 million will be utilised for the expansion of its existing medical centre at Nexus @ Bangsar South, by leasing additional space of 12,000 to 15,000 square feet to cater to current and future demand for its medical services, it said.

"RM37.1 million will be utilised for geographical expansion 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 Baru, Penang or Ipoh. RM17.40 million will be for working capital purposes and RM4.7 million for defrayment of listing expenses,” the company said in a statement.

Going forward, it expects the private healthcare services market in Malaysia to grow steadily at a compounded annual growth rate of 9.6 per cent from 2022 to 2026, underpinned by overall population growth, an ageing population and an increasing incidence of non-communicable diseases.

Executive chairman Datuk Dr Tan Huck Joo said Cengild has been on a remarkable journey since October 2017 and this IPO has provided it with the platform to realise its ambitions and accelerate expansion plans.

"As the only independent, full-fledged medical centre in Malaysia specialising in gastrointestinal and liver diseases, as well as obesity, our aim is not only to provide the best treatment for our patients but also to build a reputable centre of excellence in the region,” he said. — Bernama