Disposable gloves manufacturer UG Healthcare Corporation has successfully raised $19.1 million through its share placement.

The placement was oversubscribed by over 2.5 times. The gross proceeds of the placement will be used for the company’s capacity expansion plans as well as general working capital purposes.

On August 18, the company proposed a placement of up to 7.5 million fully paid-up ordinary shares at the placement price of $2.545 following the placement agreement it entered with CGS-CIMB Securities (Singapore) and SAC Capital.

The placement price represents a discount of some 9.9% to the volume weighted average price of $2.8247 per share on August 18.

The 7.5 million ordinary shares placed represent an approximate 3.82% of the existing issued share capital of 196.1 million shares. It will represent about 3.68% of the enlarged issued share capital of 203.6 million shares.

CGS-CIMB Securities (Singapore) and SAC Capital are the joint placement agents for this placement.

Shares in UG Healthcare closed 4 cents higher, or 1.5% up, at $2.69 on August 21.