KUALA LUMPUR (Aug 3): PublicInvest Research has valued ACE Market-bound Optimax Holdings Bhd at 51 sen, pegged to a circa 12 times price-earnings ratio multiple to its earnings per share of 4.2 sen for the 2021 financial year (FY21).

Optimax provides eye specialist services through a chain of 13 specialist centres that are allocated in several states in Malaysia.

In an initial public offering (IPO) note today, the research house said moving forward, it believes Optimax will continue to focus on its core competencies in providing eye specialist services and expand its market access in terms of geographical locations within Malaysia.

Optimax also plans to build more ambulatory care centres to leverage its existing expertise in providing eye specialist services, it added.

“Optimax is seeking a listing with an enlarged issued and paid-up share capital of 270 million shares on Bursa Malaysia’s ACE Market,” PublicInvest said.

The IPO is expected to raise approximately RM21 million from the issuance of 70 million new shares.

PublicInvest also said besides utilising 49.3% of the proceeds for capital expenditure, 16.8% of the proceeds are allocated as working capital.

Pursuant to the IPO listing, it said the company’s market capitalisation is RM81 million based on its IPO price of 30 sen.

The research house believes Optimax’s growth will be dependent on the expansion of its network of ambulatory care centres in Malaysia that aims to address the potential needs of urban communities in the central region of Peninsular Malaysia.

It said growth could also depend on the purchase of new ophthalmological equipment and tools for its existing specialist centres in order to upgrade existing equipment, increase service offerings or expand existing capacity.

“Optimax’s competitive strengths include having a track record of 25 years to serve as reference to new customers, having an established network of private eye specialist centres in Malaysia, having a dedicated and medically qualified team of eye surgeons and having an experienced management and operational team,” it added.

PublicInvest highlighted key demand drivers may include an ageing population, prevalence of lifestyle diseases, growing affluence of the population and an increase in healthcare tourism.

It also noted key downside risks, among others, include peer competition, dependency on consumer sentiments and consumer affluence, dependency on certain suppliers, risks of medical claims, regulatory actions and professional liability and dependency on the availability of ophthalmologists in Malaysia.

Optimax is tentatively slated to be listed on Aug 18.