UMediC opens 18 sen above IPO price in debut on ace market

by | Jul 27, 2022 | News | 0 comments

PETALING JAYA: UMediC Group Bhd (UMC) made its debut on the ACE Market of Bursa Malaysia Securities today at 50 sen for an 18 sen or 56.25% premium over its initial public offering (IPO) price of 32 sen with an opening volume of 11.14 million shares.

UMC raised RM31.1 million via the issuance of 97.22 million new shares. About 11.3% of the proceeds have been earmarked for the construction of a new factory building, 21.9% for the setting up of new marketing and distribution offices, 28.9% for the repayment of bank borrowings, 27.8% for working capital whilst the remaining 10.1% will be for listing expenses.

UMC executive director and CEO Lim Taw Seong said for 20 years, the company has been continuously transforming from dental-related products to medical devices and consumables for its marketing and distribution segment.

“In addition, we also managed to venture into the manufacturing segment and will continue to grow our footprint by introducing new products in the market,” said Lim.

Lim added that the shares were oversubscribed by 46.81 times, indicating strong market sentiment towards the medical device industry, which remains vibrant in light of growing interest in quality healthcare.

Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for this initial public offering exercise.

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