SINGAPORE (Nov 29): UG Healthcare Corporation, an established Malaysia-based manufacturer and distributor of examination gloves, is launching an IPO on the SGX.
UG Healthcare manufactures and distributes natural latex and nitrile examination gloves under its own brands including its “Unigloves” brand name as well as third party labels where it is engaged as original equipment manufacturer.
The group also distributes ancillary products such as surgical, vinyl and cleanroom gloves, face masks and other medical disposables.
While its gloves are used predominantly in the healthcare industry, they are also used across a diverse range of industries such as laboratories, food handlers, automotive, beauty and cleanroom.
The company said it lodged its IPO offer document with the bourse operator yesterday (Nov 28).
In the IPO, 28.8 million shares are being offered for subscription by way of offer and placement at the invitation price of 21.5 cents per share.
The invitation comprises 1.8 million shares by way of offer to the public in Singapore and 27 million shares by way of placement to retail and institutional investors in Singapore.
UG Healthcare plans to use the net proceeds of $4.22 million for the expansion of the group’s production capacity, sales and distribution network, and R&D efforts of new products.
Upon completion of the IPO, UG Healthcare’s total issued share capital will be about 188 million shares, with its market capitalisation expected to be $40.4 million, based on its invitation price of 21.5 cents per share.
Following the completion of the invitation, the promoters and pre-invitation investors will collectively hold 84.68% of the total number of shares in UG Healthcare.
In FY2014 ended June, net profit increased 28.9% to $4.9 million from $3.8 million in FY2013 while group revenue increased 4.3% to $49 million from $47 million on the back of higher sales of natural latex and nitrile examination gloves.
The public offer opened at 6.00 p.m. yesterday and will close at 12 noon on Thursday, Dec 4.