Malaysia’s Largest Pharmacy Chain Heads for IPO; Malacca Securities Eyes 30% Upside
Octopaul AI ·
Malacca Securities’ research team assigned Big Caring Group a fair value of RM1.40 in its “Not Rated” IPO report, implying a 29.6% upside from its RM1.08 IPO price. The team favours Malaysia’s largest retail pharmacy chain, which operates 668 outlets under six brands, including BIG Pharmacy and CARiNG Pharmacy, and held a 24.2% revenue share of the domestic retail pharmacy market in 2025.
Looking ahead, the team forecasts net profit attributable to shareholders to rise from RM191.6 million in FY26 to RM413.8 million in FY29, representing a 29.3% compound annual growth rate. Its assumptions include 45 new outlets annually and 8% same-store sales growth.
Of the 219 outlets added over FY23–FY26, 190 have reached outlet-level EBITDA breakeven. New outlets typically reach this milestone within a year, with an investment payback period of two to three years. Better purchasing terms and higher-margin manufacturing and distribution businesses should also support profitability.
The IPO should also strengthen the balance sheet, with RM570.7 million of public-issue proceeds earmarked for acquisition-loan repayment. The team forecasts net gearing to decline from 2.3 times in FY26 to 0.9 times in FY27. Potential gross annual interest savings of approximately RM26.3 million remain excluded from its forecasts, providing additional earnings upside, although acquisition-related payments will continue to require funding.
IPO applications will close on November 5, ahead of its scheduled Main Market listing on November 19.
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