KUALA LUMPUR (Sept 29): UMS Integration Ltd (KL:UMSINT) is seeking to raise up to RM450 million through a placement representing 5.63% of its enlarged share capital, to fund projects in Penang, Malaysia, as well as expansion in Vietnam and Singapore.
It plans to issue up to 52.94 million new shares at RM8.50 each, the dual-listed integrated high-precision engineering and manufacturing firm said in a filing with Bursa Malaysia on Tuesday.
The shares will only be offered and sold in Malaysia, UMS Integration, which is primarily listed in Singapore, said. The issue price is a 1.11% discount to the volume weighted average price on Sept 28, 2026 of RM8.595 a share.
It has entered into a placement agreement with CGS International Securities Malaysia Sdn Bhd and AmInvestment Bank Bhd, which will act as placement agents on a best-efforts basis.
UMS Integration said the proposed placement will strengthen its financial position, provide flexibility to pursue growth opportunities, broaden its shareholder base and expand its capital base.
Of the estimated RM443 million in net proceeds after fees and expenses, RM332.25 million, or 75%, will be used to fund projects in Penang.
The company intends to use the proceeds to expand its manufacturing capabilities at its Penang facilities through advanced automation, including automated machinery, robotics and digital monitoring systems.
The initiative is aimed at improving production efficiency and product consistency while reducing reliance on manual labour amid manpower shortages, it said.
The remaining 25%, or RM110.75 million, will be used to support the group’s businesses in Vietnam and Singapore.
Completion of the placement is expected to take place on Oct 9, 2026, with the placement shares to be credited on the closing date, it noted.
UMS Integration shares were suspended from trading on Tuesday pending the announcement and will resume trading on Wednesday. The counter was last traded at RM8.61, giving the company a market capitalisation of RM7.65 billion.