KUALA LUMPUR (May 28): Engineering firm UUE Holdings Bhd on Tuesday began taking orders from investors for its ACE Market initial public offering (IPO) that would raise up to RM38.97 million.
The IPO, priced at 24 sen per share, comprises a public issue of 124.9 million new shares and an offer for sale of 37.46 million existing shares, according to its prospectus posted to Bursa Malaysia. All in all, the listing offers investors up to 26.7% in the firm that mainly provides underground utilities engineering services.
Applications for the IPO shares will close on June 18 and listing has been scheduled for July 2.
Under the public issue, UUE has set aside 30.42 million new shares for the Malaysian public and 40.59 million for eligible persons. The public issue also involves a private placement of 38.57 million new shares to Bumiputera investors and 15.32 million shares to selected investors.
Apart from engineering services, the company is also involved in the manufacturing and trading of high-density polyethylene pipes.
Proceeds raised from the public issue totalling RM29.98 million 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 into subsea works and expand its existing suite of underground utilities engineering offerings.
The remaining gross proceeds have been earmarked for general working capital, as well as estimated listing expenses in relation to the IPO.
Meanwhile, the offer for sale of existing shares will raise RM8.99 million that will accrue entirely to the selling shareholders, including managing director Datuk Kenny Ting.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.