Aoxin Q & M Dental Group Upsizes Share Placement Amid Strong Investor Demand

Overview

Aoxin Q & M Dental Group Limited has announced a significant upsizing of its proposed private placement of new ordinary shares, following robust investor interest. The company entered into an addendum agreement with its Placement Agent, SAC Capital Private Limited, to increase the number of shares offered in the SAC Placement from up to 63,000,000 to up to 84,000,000 shares. There is no change to the terms of the parallel Q & M Placement.

Key Highlights

• Total Placement Size: The maximum aggregate number of Placement Shares (under both the SAC and Q & M Placements) increases from 113,000,000 to 134,000,000.
• Placement Price: S\$0.1566 per share, representing a discount of approximately 10% to the volume weighted average price (VWAP) of S\$0.1740 on 27 February 2026.
• Gross Proceeds: The total gross proceeds increase from S\$17.70 million to approximately S\$20.98 million.
• Net Proceeds: After estimated placement expenses of S\$0.8 million, net proceeds are expected to be S\$20.2 million.
• Share Capital Impact: The new shares will represent about 13.10% of the existing share capital, and after completion, approximately 11.58% of the enlarged capital base.
• Shareholder Approval: The upsized placement is subject to shareholder approval at an EGM to be convened.
• Use of Proceeds:
  • 95% (S\$19.2 million) for expansion via organic growth, M&A, joint ventures, and partnerships.
  • 5% (S\$1.0 million) for general working capital.
• All placement shares will rank pari passu with existing shares except for dividends, rights, or distributions declared before their issue.

Details for Shareholders

Shareholders should take note of the following:

• This is a non-underwritten placement and will be executed under Singapore’s “safe harbour” exemptions, meaning no prospectus will be issued.
• The Placement Agent has confirmed there are no share borrowing arrangements to facilitate this placement.
• Shares are only to be placed to parties not related to directors or substantial shareholders, unless specifically approved in accordance with Catalist rules and SGX-ST requirements.
• Should any end-placee become a substantial shareholder or result in a transfer of controlling interest, the company will make the necessary disclosures and seek shareholder approval if required.
• The commission paid to the Placement Agent will not be shared with any end-placee.
• Use of net proceeds for working capital will be detailed in company announcements and financial statements. Any material deviation from stated uses will be announced with reasons provided.
• The placement is subject to conditions precedent under the Placement Agreements and specific shareholder approval.

Potential Share Price Impact and Investor Considerations

• Dilution: The placement will expand the share base by about 13.1%. While this results in EPS dilution (from RMB 0.68 cents to RMB 0.60 cents), the increased capital base supports future growth and M&A opportunities.
• Strengthened Financial Position: Net tangible assets per share will improve from RMB 21.72 cents to RMB 29.08 cents, reflecting a stronger balance sheet.
• Growth Ambitions: The primary use of proceeds is for business expansion, which could drive future earnings growth if acquisitions or organic investments succeed.
• Price Sensitive Event: The significant upsizing in response to investor demand signals strong market confidence, but the increase in share supply and potential dilution may weigh on the share price in the short term.
• Key Risks: The placement is not final until all conditions are met, including EGM approval. Shareholders should monitor further announcements for updates on completion and use of funds.

Directors’ and Substantial Shareholders’ Interests

Certain directors of the company are also directors and/or executive officers of Q & M, including Dr. Ng Chin Siau (Non-Independent Non-Executive Director), Ms. Ng Sook Hwa (Non-Independent Non-Executive Director), and Professor Chew Chong Yin (Independent Director). These directors have abstained from all board decisions regarding the placement.

Next Steps

• The company will issue a circular with full details and notice of EGM in due course.
• An application for listing and quotation of the Placement Shares will be made to the SGX-ST.
• All material developments will be announced to shareholders as they occur.

Cautionary Statement

The upsized placements remain subject to the fulfilment of all conditions precedent and shareholder approval. There is no certainty that the placement will be completed. Shareholders are advised to review all company announcements and seek professional advice if in doubt.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors are advised to conduct their own due diligence and consult with their professional advisors before making any investment decisions. The information is based on the company announcement dated 24 March 2026 and may be subject to change.

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