KUALA LUMPUR (March 22): Digital healthcare solutions provider Sancy Bhd made its debut on the LEAP Market of Bursa Malaysia on Wednesday (March 22).

The stock opened unchanged at 12 sen, which was at its IPO price. At 9.55am, the stock traded at 26 sen per share, a premium of 14 sen or 116% over its reference price, with 10,000 units changing hands.

The counter closed 150% or 18 sen higher at 30 sen, with 51,100 units changing hands. At market close, Sancy’s market capitalisation was RM204 million.

Upon its listing on Wednesday, Sancy raised RM7.67 million in proceeds, which will be utilised for working capital, technology research and development activities among others, within 24 months from now.

At a press conference after the group's listing ceremony, Sancy group CEO Prabuddha Kumar Pronob Chakravertty said that the group is optimistic on hitting its target to onboard approximately 100 hospitals in Malaysia into its Insurance Data Exchange and Analytical System (IDEAS) platform.

He noted that there are about 42 hospitals in Malaysia that are currently in the queue to be boarded onto its platform.

“Actually, the way it (the target) is moving, looks like we don’t need to wait for next year. It will be (achievable) by this year,” Prabuddha said.

He was also optimistic that the group will deliver double digit growth for both top and bottom lines in its financial year ending March 31, 2024 (FYE2024).

“This mainly comes from the IDEAS platform and hospital information system, while the business processing operations and maintenance business segments will provide the remainder of the contributions to Sancy’s growth,” he said.

Formed in 2017, Sancy provides services of health information management systems via information technology and business processing operations.

Expand presence in Malaysia

For this year specifically, Sancy intends to expand its presence in Malaysia by reaching out to more healthcare providers and insurance providers.

"For now, we are in negotiations with more than five entities, including insurance providers and healthcare providers, to attract them into adopting the IDEAS platform.

“We are confident to secure at least some, if not all, of them to be our new customers and we are looking to commence the onboarding procedures by the second quarter of 2023 (2QFY2023),” he said.

Currently, Sancy has several healthcare providers from international markets including Pakistan, Thailand, Philippines, India, Bangladesh and Senegal onboarding the IDEAS platform and Hospital Information System.

“These customers are expected to start contributing significantly to our financial performance in FY2025," he said.

For now, nearly 100% of its revenues are derived from Malaysia, although some of its existing customers are incorporated outside of Malaysia. To date, it serves 27 customers in total.

When asked on its dividend policy, Astramina Advisory Sdn Bhd — who is the approved adviser and continuing adviser for the group’s listing — said that Sancy currently does not have any formal dividend policy.

“We have not made any (dividend policy) yet. Maybe, when we prepare to go for the ACE market where we generate more decent or higher earnings, then I think the company may formulate the dividend policy,” Astramina managing director Datin Wong Muh Rong said.

Sapura Energy ex-CEO Shahril holds 20.25% stake in Sancy

Sancy has secured Sapura Energy Bhd’s former CEO Tan Sri Shahril Shamsuddin as its strategic shareholder, and he will also serve as non-executive chairman of Sancy.

Collectively, Shahril and his vehicle Sapura Capital’s total investment is RM13.27 million, for a 20.25% stake.

“I am investing in Sancy due to its sound management, and I also personally see a lot of potential in the medical information technology business.

“I aim to portray Malaysia as a technology hub for talented IT partners to leverage on Bursa Malaysia as the platform for fundraising and listing,” Shahril said.

The tycoon views that the group is “presently very nimble”, while its business model has been evolving very fast and efficiently since 2018.

“This is despite most of its businesses still mainly being in Malaysia. I look forward to adding value to the company by providing advice and guidance in respect of its international expansion. I strive to help Sancy grow to a much larger size,” he added.