Thursday 20 Jun 2024
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KUALA LUMPUR (May 3): Engineering firm UUE Holdings Bhd said on Friday that it has signed an agreement with M&A Securities to underwrite its initial public offering (IPO) on the ACE Market.

The IPO consists of a public issue of 124.90 million new shares and an offer for sale of 37.46 million existing shares. Under the agreement, M&A Securities will underwrite 30.42 million new shares allocated to the Malaysian public and 40.59 million to eligible persons under the public issue.

“The underwriting agreement represents a pivotal achievement on our journey towards our listing,” UUE’s managing firector Datuk Kenny Ting said in a statement. “Proceeds from the IPO will play a crucial role in fuelling our expansion efforts, enabling us to enhance and extend our services to both our current and prospective customers across Malaysia and Singapore.”

The public issue also involves private placement of 38.57 million new shares to Bumiputera investors and 15.32 million shares to selected investors. All in all, the IPO offers investors up to 26.7% in the company that mainly provides underground utilities engineering services.

The company is also involved in the manufacturing and trading of high-density polyethylene pipes.

Proceeds from the IPO have been earmarked for the purchase of machinery and equipment, such as horizontal directional drilling machines, lorries and excavators to cater for the ongoing and future projects to be secured.

UUE will also acquire a maxi rig drilling machine which will allow the company to venture to subsea works and expand its existing suite of underground utilities engineering offerings.

The remaining gross proceeds has been earmarked for general working capital, as well as estimated listing expenses in relation to the IPO.

Proceeds from the offer for sale of 37.46 million existing shares, meanwhile, will accrue entirely to the selling shareholders that include Ting, according to its draft prospectus filed on Sept 12, 2023. 

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO. 

Edited ByJason Ng
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