Medtecs shares jump nearly 12% as PPE maker eyes mainboard transfer

The company said the transfer would better allow them to attract institutional investors and reach out to a wider investor base. PHOTO: AFP

SINGAPORE (THE BUSINESS TIMES) - Medtecs International is planning to transfer the company's listing from the Catalist to the mainboard of the Singapore Exchange (SGX), it said on Monday (Nov 16).

Separately, Medtecs also announced that the group will be included in the MSCI Singapore Small Cap Index from Nov 30, after market close on that day.

The personal protective equipment (PPE) and hospital service provider said a transfer to the mainboard would better allow the company to attract institutional investors and reach out to a wider investor base, both within Singapore and overseas.

It added that a listing on the mainboard would enhance the image of the company and provide greater visibility and recognition in the market. Medtecs said this is "particularly critical" amid the Covid-19 pandemic, where there could be pockets of opportunity for the company to tap in order to expand its business operations.

Medtecs shares closed up 10.5 cents or 11.9 per cent to 99 cents on Monday. A hefty 50.5 million shares changed hands, making it among the day's top volumes on the Singapore Exchange.

The company will be submitting an application to SGX for the proposed transfer, and will provide updates on the outcome in due course. Medtecs said the proposed transfer is subject to in-principle approval by SGX, as well a shareholder approval. The company would also need to meet the minimum quantitative requirements set out under SGX mainboard rules.

With regard to the group's upcoming inclusion in the MSCI Singapore Small Cap Index, William Yang, executive director and chief executive officer, said: "The inclusion serves as a strong affirmation of our market-leading position, and will bring about higher trading liquidity and visibility to investors globally."

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