KUALA LUMPUR (Sept 7): Cengild Medical Bhd (KL:CENGILD) plans to place up to 16.66 million new shares, or 2% of its issued share capital, to specialist medical practitioners who provide services to the group on a contractual basis.
Cengild said the plan would help attract and retain experienced medical specialists, who are not employees and therefore are not eligible for its existing executives’ share option scheme, an avenue to participate in the company’s equity ownership.
At an illustrative issue price of 17.2 sen per share, the placement would raise gross proceeds of about RM2.87 million, the company said in a bourse filing on Monday.
The proceeds, it said, will mainly be used to purchase medical equipment, including radiological and endoscopy equipment as well as equipment for operating theatres and central sterile services, to support the operations and commencement of the group’s new medical centre in Bangsar South.
Cengild said the shares will be issued in multiple tranches within six months from Bursa Malaysia Securities’ approval for their listing.
Following the new share issuance, Cengild’s issued shares would increase to about 849.57 million from 832.91 million currently.
The placement exercise is subject to Bursa Securities’ approval, with completion expected by the first quarter of 2027.
UOB Kay Hian has been appointed as the adviser and placement agent.
Cengild currently operates its medical centre solely at Nexus @ Bangsar South. It began operations in October 2017, initially focusing on gastrointestinal and liver diseases as well as obesity, and has since expanded its specialist services to include cardiology, urology and oncology.
The company recently entered into a joint venture with KCB Holdings Sdn Bhd, a unit of Eastern & Oriental Bhd (KL:E&O), and Skyspring Sdn Bhd to develop and operate a multidisciplinary tertiary private hospital in Andaman Island, Penang.
On Monday, Cengild’s share price closed up half a sen or 2.56% at 20 sen, giving the company a market capitalisation of RM167 million.