UUE Holdings targets RM30mil from upcoming IPO

From left: UUE Holdings independent non-executive director Latha Pillay, executive director and chief financial officer Vincent Wong, executive director Hin Wai Mun, executive director Chong Tuoo Choi, independent non-executive chairman Lee Chye Tee, managing director Datuk Kenny Ting, M&A Equity Holdings Bhd Datuk Bill Tan, M&A Securities Sdn Bhd head of corporate finance Gary Ting and deputy head of corporate finance Rachel Ho

PETALING JAYA: Underground utilities engineering solutions provider UUE Holdings Bhd has scheduled a listing on the ACE Market of Bursa Malaysia on July 2, 2024 as part of its initial public offering (IPO) with the target to raise RM29.98 million.

Managing director Datuk Kenny Ting said: "From our IPO, we intend to spend over 50 per cent of the gross proceeds raised on the purchase of new machinery and equipment, ranging from horizontal directional drilling (HDD) machines to lorries and excavators.

"More importantly, we intend to acquire our first Maxi rig HDD machine, marking our first venture into subsea HDD works.

"We have also earmarked over 36 per cent for working capital to support existing and new projects that we are embarking on," he said at the company's prospectus launch today.

In a statement, the company mentioned that the IPO involves the issuance of 124.90 million new shares at an IPO price of 24 sen per share.

"Based on the group’s enlarged share capital of 608.29 million shares at the aforesaid IPO price, the market capitalisation of the company will be approximately RM145.99 million.

"The company’s shares have been classified as shariah compliant by the Shariah Advisory Council of the Securities Commission Malaysia," it said.

Moving forward, the company said it is targeting new opportunities in the eastern regions of Peninsular Malaysia.

"Out of our order book’s total of RM223.4 million, we have managed to secure projects worth close to RM84 million in the eastern region.

"With our new listing status and the proceeds from the IPO, we are dedicated to continuous growth, innovation and sustainable profitability," it said.

The public issue portion of the IPO will be made available from today and applications will close at 5pm on June 18.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise. - Bernama

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UUE , IPO , Bursa , ACE ,  Kenny Ting , Engineering


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