KUALA LUMPUR (Oct 30): Penang-based medical device company UMediC Group Bhd has proposed to undertake a special issue of up to 24.93 million new shares, equivalent to 6.67% of its total issued shares, to Bumiputera investors to be identified and/or approved by the Ministry of International Trade and Industry (Miti) at an issue price to be determined and announced later.

The company was listed on the ACE Market of Bursa Malaysia in July 2022 under the condition that it will allocate 12.5% of its enlarged issued shares to Bumiputera investors to be approved by Miti within one year after achieving the profit requirement for companies seeking listing on the Main Market, or five years after being listed on the ACE Market, whichever is earlier.

UMediC had achieved an audited consolidated net profit of RM10.32 million for the most recent financial year ended July 31, 2023 (FY2023), and an aggregate combined/consolidated net profit of RM21.83 million for FY2021, FY2022 and FY2023.

As such, the company has one year until July 31, 2024 to comply with the Bumiputera equity condition.

In a filing with Bursa Malaysia on Monday, UMediC said at an illustrative price of 71.5 sen — a 4.73% discount to the five-day volume-weighted average market price of UMC shares up to and including Oct 20, 2023 of 75.05 sen — the proposed special issue is expected to raise RM17.82 million.

UMediC added that RM17.49 million of the proceeds had been earmarked for the company’s working capital, while the remaining RM330,000 is for the exercise’s estimated expenses.

In addition to the proposed special issue, UMediC’s substantial shareholders — UMedic Capital Sdn Bhd, Datuk Ng Chai Eng, Lim Taw Seong and Lau Chee Kheong — intend to undertake an offer for sale of up to 24.93 million existing UMediC shares to Bumiputera investors, at an offer price to be announced later.

The shares will be issued to Bumiputera investors to be identified and approved by Miti.

Barring any unforeseen circumstances, the proposed special issue is expected to be completed in the second quarter of 2024.

Affin Hwang Investment Bank Bhd has been appointed as the principal adviser and placement agent of the proposed special issue and offer for sale.

UMC shares dipped half a sen or 0.68% to close at 73 sen on Monday, giving the company a market capitalisation of RM273 million.