KUALA LUMPUR: Shariah compliant UUE Holdings Bhd today debuted on the ACE Market of Bursa Malaysia Securities at 66 sen or a 175 per cent premium to its initial public offering price of 24 sen per share, with an opening volume of 30.71 million shares as at 9:00 a.m.
As at 10.28am, it was trading at 61.5 sen a share, giving it a market capitalisation of RM374.1 million.
UUE is an underground utilities engineering solutions provider with Grade G7 accreditation from the Construction Industry Development Board (CIDB) across categories such as Building, Civil Engineering and Mechanical & Electrical Engineering Works.
Its operating subsidiary is also registered with Tenaga Nasional Bhd (TNB) allowing it to supply material and services to TNB.
UUE raised RM29.98 million from its listing on the ACE Market.
About 52.5 per cent, or RM15.75 million, of the proceeds will be used for the purchase of machinery and equipment, with 36.3 per cent, or RM10.89 million, channeled for working capital.
The remaining proceeds of RM3.33 million have been earmarked for listing expenses.
The company's listed shares are classified as Shariah compliant by the Shariah Advisory Council of the Securities Commission Malaysia (SC).
UUE independent non-executive chairman Lee Chye Tee said looking forward, the company plans to acquire more machinery to expand its range of underground utilities engineering solutions and the scale of its projects.
He added that this includes acquiring a maxi rig horizontal directional drilling (HDD) machine to venture into subsea HDD works, thereby broadening the company's service offerings.
"To supplement our existing assets, we lease additional machinery, including HDD machines, excavators, and lorries," he said in a statement.
Additionally, Lee also said UUE is committed to further expanding its services in Singapore.
He noted that 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," he said.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter, and placement agent for UUE's IPO exercise.