mDR Limited Makes Significant Moves in Quoted Securities – Key Investor Update

Date: 19 December 2025
Company: mDR Limited (SGX: A27)

Key Highlights from the Latest Announcement

• Significant Acquisition of Quoted Securities:
  In accordance with Rule 704(17)(b) of the SGX Mainboard Rules, mDR Limited and its subsidiaries (the “Group”) announced the acquisition of quoted securities with a total value of approximately S\$11.02 million during the period from 12 December 2025 to 17 December 2025.
• Material Disposal of Quoted Securities:
  Under Rule 704(18)(b), the Group also disposed of quoted securities worth approximately S\$4.62 million (based on historical cost) during the same period.
• Significant Asset Movement:
  The value of securities acquired is equivalent to 7.4% of the Group’s latest audited consolidated net tangible assets (NTA), while the disposal represents 3.1% of the NTA.
• Impact on Investment Portfolio:
  • Aggregate cost of quoted investments: Increased from S\$291.19 million to S\$296.99 million after these transactions.
  • Proportion of quoted investments to NTA: Rose from 196.2% to 200.1% of the Group’s latest audited consolidated NTA (S\$148.43 million as at 31 December 2024).
  • Total market value of quoted investments: Increased from S\$209.59 million to S\$214.83 million.
  • Provision for diminution in value: No provision required, indicating no impairment recognized on its quoted securities portfolio.

What Investors Should Know

• Highly Leveraged Investment Position:
  The Group’s quoted securities portfolio now stands at 200.1% of its NTA, which is a substantial exposure. This level of leverage to market movements in quoted securities could significantly enhance returns if markets rise, but also exposes the company to material downside risk if markets fall.
• Potential Impact on Share Price:
  These substantial acquisitions and disposals may be perceived as a signal of management’s market outlook and risk appetite. The scale of the portfolio relative to the company’s NTA is highly material and may affect the company’s valuation, risk profile, and investor sentiment.
• Financial Reporting and Shareholder Transparency:
  All movements have been made in accordance with SGX’s disclosure rules, highlighting the company’s commitment to transparency.
• Market Value vs Cost:
  The total market value of the quoted investments (S\$214.83 million) remains below their aggregate cost (S\$296.99 million), which may be a point of concern regarding unrealised losses.
• No Provision for Diminution:
  Despite the market value being lower than cost, no provision for diminution has been made, suggesting management believes in the recovery or long-term value of these investments.

Conclusion

The recent announcement by mDR Limited regarding significant movements in its quoted securities portfolio is highly material for shareholders and potential investors. The scale of these transactions, especially the aggregate cost of quoted investments now exceeding twice the Group’s net tangible assets, could introduce significant volatility to the company’s financial results and share price. Investors are strongly advised to monitor future updates and market developments closely, as further changes in the value of these investments could have a pronounced impact on the company’s financial position and market valuation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult their financial advisors before making any investment decisions related to mDR Limited.

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