UMediC surges on ACE Market debut

The IPO exercise will enlarge its share capital to 373.9m shares, bringing UMediC a market capitalisation of RM119.6m at the point of listing

by ANIS HAZIM / Pic by TMR

UMEDIC Group Bhd made a strong debut on the ACE Market of Bursa Malaysia with an opening price of 18 sen or 56.25% above its IPO price of 32 sen.

Upon listing, the stock saw a total of 11.14 million shares done, making it the most actively traded stock on the local bourse this morning.

“I think we are very glad that the market has confidence in us. Of course, this also served as motivation for the management to even go further,” UMediC alternative director Ng Chin Liang said at a media conference after the listing ceremony today.

The IPO exercise will enlarge its share capital to 373.91 million shares, bringing UMediC a market capitalisation of RM119.65 million at the point of listing.

Of the gross proceeds of RM31.11 million, RM9 million will be allocated 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.

Another RM6.8 million will be allocated for the setting up of 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, Penang.

On Friday, UMediC posted a net profit of RM1.29 million on revenue of RM6.47 million for the third quarter ended April 30, 2022.

UMediC remains confident in its prospects moving forward as it sees good potential in the healthcare industry amid the high inflation and other global risks.

“Regardless of the ongoing geopolitical tension or the high inflation rate, when you’re sick, you need to get treatment regardless of where you are. Therefore, we do see strong demand for that (healthcare industry),” he noted.

Nevertheless, the group experienced a price increase in its operation due to inflation but remains positive as the group will be able to budge on the costs.

UMediC previously highlighted that it will increase its production capacity to further improve its service while planning to launch several products which are in the pipeline, according to a recent report by The Malaysian Reserve.

Affin Hwang Investment Bank Bhd is the principal advisor, sponsor, sole placement agent and sole underwriter for the IPO exercise.