KUALA LUMPUR (June 21): Engineering firm UUE Holdings Bhd, which is en route to listing on the ACE Market of Bursa Malaysia on July 2, said its initial public offering (IPO) has been oversubscribed by 103.83 times.
In a statement on Friday, UUE said it received 25,019 applications for 3.19 billion shares worth RM765.24 million from the Malaysian public, which represents an overall oversubscription rate of 103.83 times over the 30.42 million new shares it made available for public subscription.
There were 12,691 applications for 1.14 billion shares under the Bumiputera portion, which translates to an oversubscription rate of 74.03 times. The remaining public portion saw 12,328 applications for 2.05 billion shares, indicating an oversubscription rate of 133.64 times.
Besides the 30.42 million new shares it allocated for the Malaysian public, UEE has also set aside 40.59 million new shares for eligible directors, employees and persons who contributed to the company under its IPO — all of which have been fully subscribed.
It has also fully placed out 38.57 million new shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and 15.32 million shares to selected investors.
An offer for sale of 37.46 million shares from its existing shareholders have also been fully placed out.
The notices of allotment will be posted to all successful applicants on June 28, 2024, said UUE.
The IPO involves a public issue of 124.9 million new shares for the Malaysian public and an offer for sale of 37.46 million existing shares. All in all, the listing offers investors up to 26.7% in the firm.
UUE aims to raise RM29.98 million from the listing based on its initial offering price (IPO) of 24 sen per share. Proceeds raised 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 its ongoing projects as well as new ones to be secured.
UUE also wants to buy a maxi-rig drilling machine 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, and to offset expenses in relation to the IPO.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.