Singapore: EPF increases stake in UG Healthcare

The Employees Provident Fund (EPF) Board of Malaysia, which manages the compulsory savings plan and retirement planning for private sector workers in Malaysia, has become a significant shareholder of medical glove manufacturer UG Healthcare.

On 1 October it bought 605,000 shares in an open market transaction for S$1.5m (US$1.1m) which increases its stake from 4.99% to 5.3%

Towards the end of August, UG Healthcare completed a fully subscribed S$19.1m placement that was more than two and a half times oversubscribed on the SGX.

It sold 7.5 million shares at S$2.545 per share. This was a 9.9% discount to the VWAP on 18 August.

“Through this placement, the group will enjoy a sound and strong financial base, allowing us ample financial resources to execute the expansion plan for the 1.2 billion pieces of gloves, to bring our installed annual production capacity to 4.6 billion pieces by end June 2021,” said financial director Lee Jun Yih.

CGS-CIMB and SAC Capital were joint placement agents.

UG Healthcare shares rose 9% after the announcement.