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UMediC Group amplifies production and diversification with IPO residual funds

EditorPollock Mondal
Published 2023-11-03, 06:58 a/m
© Reuters.
UMED
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UMediC Group Bhd, also known as UMC, announced plans to invest the remaining RM7.92 million from its initial public offering (IPO) funds into expanding its marketing distribution and manufacturing capacities. The company's decision follows a successful debut on the ACE Market of Bursa Malaysia in 2022, which saw a 56.25% premium on its IPO.

Today, UMC confirmed the construction of a new factory, designed to double the production capacity for the HydroX series prefilled humidifiers, one of the key products that has significantly contributed to revenue growth in their manufacturing sector. The company plans to utilize the listing proceeds for further production expansion, aiming to increase revenues and profitability.

Alongside production enhancement, UMC is set to diversify its healthcare services. The group aims to venture into nursing home management and ambulance services next year, reflecting their commitment to essential healthcare provision. UMC also recognizes digital healthcare equipment as a potential growth catalyst in their diversification strategy.

The company recently acquired Patho Solutions (M) Sdn Bhd, marking their entry into the laboratory sector. This move broadens UMC's offerings and aligns with industrial demand while effectively leveraging existing resources.

UMC's diversification strategy aligns with the government's healthcare agenda and is guided by Chairman Datuk Ng Chai Eng. The firm's robust entry into the market last year and its strategic use of IPO funds signal an ambitious growth plan in Malaysia's healthcare sector.

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