1 Doc International cancels Bursa Malaysia IPO after failing to achieve target valuation

Highlights

1 Doc International cancels its Bursa Malaysia IPO after failing to achieve its target valuation, amid weak investor interest despite a valuation below 10 times earnings.
The company recorded a profit after tax of RM129.98 million and revenue of RM421.38 million in financial year 2025, while its gross profit margin fell to 81.84% in 2024.
The proposed IPO involved the issuance of 341.4 million new shares and the sale of 238.98 million shares, with four shareholders set to receive more than 40% of the IPO's gross proceeds.

This article was translated from the original. Read the original version by our correspondent here.

IPO valuation and investor interest

As reported by The Edge Malaysia, 1 Doc International cancelled its initial public offering plans after failing to secure its target valuation, according to several sources familiar with the matter. The Puchong-based company filed to list on the Main Market in January to raise funds for expansion, but sources said management wanted a double-digit price-to-earnings ratio in the high teens.

The move came after fund managers showed less interest than expected during the IPO marketing process, even at a valuation below 10 times earnings. According to the sources cited, some investors remained unconvinced about the business's prospects.

It remains unclear whether the company will revive its listing plans in the future or opt for another fundraising method. Its founder and chief executive officer, 37-year-old Dr Michael Ong Hong Keat, was reportedly keen to proceed with the IPO to raise the company's profile, but he said the company was not for sale and declined to comment on the IPO's status.

RHB Investment Bank, the lead adviser and sole underwriter for the proposed IPO, and Maybank Investment Bank, the joint placement agent, also declined to comment. The draft prospectus filed on 14 Jan and updated on 22 May is no longer available on the Securities Commission Malaysia website.

Financial performance and sector implications

1 Doc operates 53 centres in Malaysia and four in Singapore, offering body, facial and hair care services as well as related beauty products. According to its prospectus, the company planned to open 18 new centres in Malaysia within 36 months of listing and another seven in Singapore.

OneCredit data shows that 1 Doc recorded a profit after tax of RM129.98 million for the financial year ended 31 Dec 2025, with revenue of RM421.38 million and profit before tax of around RM176.5 million. According to its prospectus, the company's net profit was RM97.05 million in financial year 2024 and RM89.67 million in financial year 2023, with most of its revenue still coming from Malaysia as its Singapore operations only began in August 2024.

The company's gross profit margin fell to 81.84% in financial year 2024 from 83.49% the previous year, while its gearing stood at 0.36 times as at 1 Nov last year. OneCredit lists Ong as the largest shareholder, with a 60.5% stake, followed by chief operating officer Joel Yap with 20% and chief learning officer Chin Boon Keat with 15%.

On Bursa Malaysia, market observers consider DC Healthcare Holdings Bhd to be the closest comparable company. Its share price performance after listing, now well below its IPO price despite surging on the first day of trading, also shows that investor sentiment towards aesthetic and beauty care stocks can shift significantly.

1 Doc's proposed IPO initially involved a public issue of 341.4 million new shares and an offer for sale of up to 238.98 million existing shares. Under the offer-for-sale component, four shareholders were expected to receive more than 40% of the IPO's gross proceeds, while after listing they and an investment holding company linked to Ong were expected to control 74.5% of the company's enlarged equity interest.

In our earlier coverage of the Big Caring Group Bhd IPO, we highlighted how the pharmaceutical group moved closer to a Main Market listing after signing a retail underwriting agreement with several investment banks. The article also outlined the large offer structure, which comprised new and existing shares, the institutional and retail tranche breakdown, and the IPO rationale for supporting the group's network expansion and financial growth.

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