PETALING JAYA: UMediC Group Bhd (UMC), en route for a listing on the ACE Market of Bursa Malaysia on July 26, aims to raise RM31.11 million in its initial public offering (IPO).

UMC will issue 97.22 million new shares at an IPO price of 32 sen per share. Based on the group’s enlarged share capital of 373.91 million shares and IPO price, its market capitalisation will be RM119.65 million.

About RM3.5 million of the IPO proceeds will be for the construction of a new factory, RM6.8 million for the setting up of new marketing and distribution offices, RM9 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 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.

UMC executive director and CEO Lim Taw Seong said given its entry into the capital market, it is well-positioned to scale up its 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,” Lim said today.

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.

“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 April 1 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 Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for this IPO exercise.