UUE Holdings Unveils IPO Prospectus To Raise RM29.98 Million

UUE Holdings Berhad (UUE) unveiled its initial public offering (IPO) prospectus in conjunction with its proposed listing on Bursa Malaysia Securities ACE Market slated for July 2, 2024.

Being well positioned for growth, UUE targets to raise gross proceeds of approximately RM29.98 million via the issuance of 124,902,000 new shares at an IPO price of RM0.24 per share.

Based on the group’s enlarged share capital of 608,292,000 shares at the aforesaid IPO price, the market capitalisation of the Company will be approximately RM145.99 million. The Company’s shares have been classified as Shariah compliant by the Shariah Advisory Council of the Securities Commission Malaysia.

UUE and its group of subsidiary companies (UUE Group) are principally involved in the provision of underground utilities engineering solutions, with a focus on pipe laying using the Horizontal Directional Drilling (HDD) method in addition to the open cut and micro trenching excavation methods.

The Group also manufactures and trades high-density polyethylene (HDPE) pipes, principally for its underground utilities engineering projects. With completed projects spanning various industries, from electrical to telecommunications, UUE has established its presence in Malaysia and Singapore with HDD solutions.

The Group recorded revenue of approximately RM103.76 million for the latest ten (10)-month financial period ended 31 December (FPE) 2024 whereas revenue for the 12-month period financial year ended 28 February (FYE) 2023 stood at RM88.66 million.

Gross margins for the FPE 2024 stood at 30.5%, within the historical range between 28.2% to 33.5% for the FYE 2021, 2022 and 2023.

UUE’s Managing Director Datuk Dr Kenny Ting said, “From our IPO, we intend to spend over 50% of the gross proceeds raised for the purchase of new machinery and equipment ranging from HDD machines, lorries and excavators. More importantly, we intend to acquire our first Maxi rig HDD machine which will mark our first venture into subsea HDD works. We have also earmarked over 36% for working capital which will support existing and new projects that we are embarking on.”

He added, moving forward, they are targeting to pursue new opportunities in the eastern regions of the Peninsular. Out of the total RM223.4 million orderbook held by the Group, we have managed to secure projects worth close to RM84 million in the eastern region.

UUE’s solutions are offered in the southern and central regions of Peninsular Malaysia and Singapore with a focus in the electricity and telecommunication industry.

The public issue portion of the IPO will be made available from today and application will close on Wednesday, 18 June 2024 at 5.00 p.m.

M & A Securities Sdn Bhd is the Adviser, Sponsor, Underwriter, and Placement Agent for UUE’s IPO exercise.

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