KUALA LUMPUR (Nov 3): Medical device company UMediC Group Bhd plans to spend its unutilised initial public offering (IPO) proceeds of RM7.92 million on developing its marketing distribution and manufacturing segments.

UMediC saw a 56.25% premium to its IPO price, when it made its debut on the ACE Market of Bursa Malaysia in 2022.

UMediC chairman Datuk Ng Chai Eng said the group plans to further diversify its portfolio by venturing into nursing home management and ambulance services next year, which is in line with its commitment to providing essential healthcare services to the community.

“In line with various growth drivers, the group is actively staying ahead of the evolving trends by looking to promote digital healthcare equipment.

“Taking a glimpse into the outlook for the healthcare industry, we believe that we are amid exciting times, as healthcare remains the centre stage of the government’s agenda,” he said.

Meanwhile, the group recently acquired Patho Solutions (M) Sdn Bhd to further diversify its offerings into the laboratory segment, leveraging its existing marketing and distribution networks as well as manufacturing capabilities.

“This is to keep up with the overwhelming industrial demand catering to the needs of our customers,” Ng said in UMediC’s annual report 2023.

He said the group’s manufacturing segment had significantly grown in terms of revenue contributions, following the commercialisation of the HydroX series prefilled humidifiers and AirdroX series inhaler spacers.

“The group is currently on track to launch and commercialise other several medical consumables, which are slated to be completed by end-2023. 

“In anticipation of higher volume orders for our HydroX series prefilled humidifiers, the construction of our new factory building is expected to be completed ahead of schedule before the end of 2023, which will allow us to double our production capacity,” Ng said. 

Moving ahead, the group plans to continue expanding its current production capacity to gain higher revenues and profitability.

“To achieve this, we will utilise the proceeds raised from our listing to construct a new factory building adjacent to our existing office and factory building in Batu Kawan, Penang.

“Given the overall positive outlook for the healthcare industry, the group is eager to pursue new opportunities to further grow the business and provide long-term value for its stakeholders,” he said.

Ng said the next few years will be pivotal, as UMC continues to build on its strengths and expertise in the medical device and consumable industry to maintain its competitive edge.

As of the end of the financial year ended July 31, 2023, the group maintained a solid balance sheet, with a net cash position of RM17.27 million and a current ratio of 11.68 times, demonstrating strong financial standing and prudent cash management.