KUALA LUMPUR: UUE Holdings Bhd made a strong debut on the ACE Market, opening at 66 sen per share or 175% over its initial public offering price (IPO) of 24 sen per share.
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The underground utilities engineering solutions provider raised a total of RM29.98mil through the public issue of 124.9 million new ordinary shares priced at RM0.24 per share.
In a statement, it said 52.5% or RM15.75mil of the utilisation of proceeds will be utilised for the purchase of machinery and equipment, and with 36.3% or RM10.89mil channelled for the working capital. The remaining proceeds of RM3.33mil have been earmarked for listing expenses.
Independent non-executive chairman Lee Chye Tee said the group plans to acquire more machinery to expand its range of underground utilities engineering solutions and the scale of its projects.
“This includes acquiring a maxi rig horizontal directional drilling (HDD) machine to venture into subsea HDD works, thereby broadening our service offerings. To supplement our existing assets, we lease additional machinery, including HDD machines, excavators, and lorries. We are also committed to further expanding our services in Singapore.
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“The demand for underground utilities engineering solutions is driven by Singapore’s plans to increase its population to between 6.5 million and 6.9 million by 2030. We intend to leverage our track record and expertise to actively participate in tenders for electricity distribution projects in Singapore,” Lee said.
M & A Securities Sdn Bhd is the adviser, sponsor, underwriter, and placement agent for UUE’s IPO exercise.
-TheStar