Friday 29 Mar 2024
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KUALA LUMPUR (July 18): UMediC Group Bhd (UMC), which is en route to list on Bursa Malaysia's ACE Market on July 26, said the retail portion of its initial public offering (IPO) was oversubscribed by 46.81 times.

The medical device manufacturer, which allocated 18.7 million new shares under its IPO for the Malaysian public, said in a statement that it received 7,888 applications from this category of investors for 893.92 million new shares.

A total of 3,998 applications for 321.94 million new shares were received under the Bumiputera category, representing an oversubscription rate of 33.44 times, while 3,890 applications for 571.98 million new shares were received under the other Malaysian public category, representing an oversubscription rate of 60.19 times.

Meanwhile, UMC said the 13.09 million new shares it allocated for subscription by eligible directors, employees and persons who have contributed to the success of the group have been fully subscribed.

Its sole placement agent for the IPO, Affin Hwang Investment Bank Bhd, has also confirmed that the 65.44 million shares the group made available for application by way of private placement to selected investors have also been fully placed out.

The group aims to raise RM31.11 million from its IPO, which comprises a public issue of 97.22 million shares in total. Based on an issue price of 32 sen per share, and an enlarged share capital of 373.91 million shares, UMC will have a market capitalisation of RM119.65 million upon listing.

Of the gross proceeds of RM31.11 million, RM9 million will be for the repayment of borrowings and RM8.66 million for working capital to finance the purchase of additional distribution products, including ventilators, defibrillators and infant care machines.

It will use RM6.8 million to set up new marketing and distribution offices in Kuala Lumpur and Johor Baru, while the remaining RM3.5 million will be used for the construction of a new factory in Batu Kawan.

UMC and its subsidiaries are principally involved in marketing and distribution of various branded medical devices and consumables as well as the provision of after sales services for all its products. The group is also involved in developing, manufacturing and marketing of medical consumables.  

For the financial year ended July 31, 2019 (FY19), the group recorded a profit after tax of RM1.32 million, which rose to RM2.42 million in FY20 and RM5.09 million in FY21, as revenue grew from RM16.42 million in FY19 to RM23.68 million in FY20, and RM34.12 million in FY21.

Besides being its sole placement agent, Affin Hwang is also the principal adviser, sponsor and sole underwriter for this IPO.

Edited ByTan Choe Choe
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