UMediC Group Berhad (“UMC”) has launched the prospectus today for its initial public offering (“IPO”) in conjunction with its listing on the ACE Market of Bursa Malaysia. day. UMC is expected to be listed on the ACE Market on 26th July 2022.
Being well-positioned for growth, UMC targets to raise an estimated RM31.11 million via the issuance of 97,224,300 new UMC shares at an IPO price of RM0.32 per share. Application for the new shares will be made available from today and will close at 5.00 pm, 13th July 2022.
Based on the Group’s enlarged share capital of 373.91 million shares and IPO price, the market capitalisation will be RM119.65 million.
RM3.50 million of the IPO proceeds will be for the construction of a new factory, RM6.80 million for the setting up of new marketing and distribution offices, RM9.00 million for the repayment of borrowings, and RM8.66 for working capital whereas the remaining RM3.15 million will be for listing related expenses.
UMC and its subsidiaries (the “Group”) are principally involved in the 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.
UMC’s Executive Director/Chief Executive Officer Lim Taw Seong said, “based on the independent market research report by Protégé Associates, the medical device industry in Malaysia is projected to experience a compound annual growth rate of 12.1% from 2021 to 2026.
Given our entry into the capital market, we are well-positioned to scale up our business to capture this growth trend. Supported by our strong track record, we have, over the years, cultivated a team of talented individuals comprising sales, medical and technical specialists. This allows us to provide exemplary service to our clients. Paired with the demand from our manufacturing segment, we intend to utilise our IPO proceeds to construct a new factory to increase the production capacity to further improve our service.”
“The Group’s outlook remains bright given the increasing awareness and demand for quality healthcare across the globe. This outlook is supported by various favourable factors, among those are the pent-up demand from locals who previously postponed medical care such as elective surgeries during the pandemic, an increase in medical tourism as our borders have since reopened to tourists beginning 1 April 2022 and improvement in public and private healthcare systems through the building of new hospitals and upgrading of existing facilities.
Most importantly, in light of our manufactured medical consumables, we noticed an increased usage of disposable medical products to reduce the risks of cross-contamination, especially after the pandemic. Therefore, our management team foresees an untapped potential and we are poised to seize on these valuable opportunities,” he added.
Affin Hwang Investment Bank Berhad Chief Executive Officer Mona Suraya Kamaruddin said, “Given its track record and expertise, we trust UMC’s move toward an IPO will also raise the Group’s corporate profile as it embarks on the next phase of its business expansion plans. We are proud to catalyse and be a part of UMC’s historic journey.”
Affin Hwang Investment Bank Berhad is the Principal Adviser, Sponsor, Sole Placement Agent and Sole Underwriter for this IPO exercise.