KUALA LUMPUR (June 30): UMS Integration Ltd is set to be the first company on the Singapore Exchange (SGX) to be also listed on Bursa Malaysia following the launch of its prospectus on Monday.

The listing will be by way of introduction, instead of through the usual initial public offering and there would not be any funds raised for the company or its current shareholders. UMS chief executive officer Luong Andy will make 10 million shares available for trading on Bursa Malaysia.

“He is merely to transfer the 10 million shares to market makers and liquidity providers to trade the shares,” said Jason Saw, managing director and group head of investment banking at CGS International advising UMS on the secondary listing.

Listing by way of introduction, which involves shares of a company already traded on another exchange, is rare on Bursa Malaysia’s Main Market. The last company to be listed by way of introduction was Australia-listed mining firm OM Holdings Ltd (KUL:OMH) back in 2021.

Shares of UMS will be fully fungible, allowing shareholders to transfer their holdings freely between the Singapore Exchange where it has a market capitalisation of about S$945 million (RM3.13 billion), and Bursa Malaysia’s for trading purposes. The company is scheduled for listing on Aug 1, 2025.

UMS is an integrated high-precision engineering and manufacturing firm, offering precision machining, sheet metal fabrication, surface treatment, as well as sub-module and full-module assembly services for semiconductor and aerospace industry.

The company remains well-capitalised, cash-rich, and does not currently require additional funding, said Luong, who founded the company. “However, should we identify a product or project that warrants further investment particularly in this capital-intensive industry, we want to maintain the flexibility to respond accordingly,” he said.

UMS plans to construct an additional facility targeted for completion in 2028. “Once the new plant is completed, we will have a clearer sense of our long-term funding requirements,” Luong said.

A 300,000 sq ft manufacturing plant in Penang was completed in 2024 at a cost of RM234 million. The facility is now dedicated to serving an unnamed Nasdaq-listed customer that supplies wafer fabrication equipment and has made significant investments in Penang in recent years.

For investors, the dual listing offers the opportunity to participate in ringgit and gain exposure to a technology exporter that delivered 15% average annual growth in stock returns over the past decade, according to CGS’s Saw.

Investors may be drawn by arbitrage opportunities if the valuation on Bursa is higher, said Saw. “If you just look at clearly where valuations are today for this company versus peers, I think there's room for re-rating,” he noted.

TA Securities is the principal adviser, while CGS International is the financial adviser for the secondary listing.