UUE Holdings jumps 175% on ACE Market debut

KUALA LUMPUR (July 2): UUE Holdings Bhd (KL:UUE) surged 175% in its trading debut on Tuesday after the engineering firm’s initial public offering (IPO) on the ACE Market raised RM38.97 million.

UUE opened at 66 sen apiece with a volume of 30.71 million shares versus its IPO price of 24 sen. The stock was trading at 67.5 sen at 9.09am after 96.92 million shares changed hands. The country’s benchmark index was up 0.15%.

The company had expected to have a market capitalisation of RM146 million upon listing, which would value the company at 10.3 times its price-earnings multiple — based on its earnings per share of 2.3 sen for the financial year ended Dec 31, 2023 (FY2023).

The company’s IPO saw its public tranche oversubscribed by 103.83 times. The Bumiputera portion was oversubscribed by 74.03 times, while the remaining public portion was oversubscribed by 133.64 times.

Shares set aside for eligible persons, Bumiputera investors, and select investors offered through private placement were fully taken up.

UUE is primarily engaged in providing underground utility engineering solutions, specialising in the horizontal directional drilling (HDD) method of laying pipes.

Its end-user markets are mainly the electricity and telecommunications sectors in both Malaysia and Singapore.

The sale of new shares raised RM29.98 million, which has been earmarked for the purchase of machinery and equipment, such as HDD 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.

The offer-for-sale, meanwhile, raised RM8.99 million, which will accrue entirely to the selling shareholders, including managing director Datuk Dr Ting Kok Hwa.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.

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UUE Holdings launches RM38.97 mil ACE Market IPO