KUALA LUMPUR (April 24): As of April 10, precision manufacturer UWC Bhd has received the green light from Securities Commission Malaysia (SC) to list on the Main Market of Bursa Malaysia.
"We are glad that the SC has approved our application to list UWC. We hope that we will be able to gain access to the capital market for our future expansion and growth," UWC executive director and group chief executive officer Datuk Ng Chai Eng said in a statement today.
The group, in its draft prospectus published in January this year, said it plans to use the proceeds of its proposed initial public offering (IPO) to acquire new machines to boost its production capacity.
UWC is mainly involved in the provision of precision sheet metal fabrication and value-added assembly services, and the fabrication of precision machined components.
The IPO is expected to involve a public issue of 70 million new shares or 19.1% of the group's enlarged issued share capital of 366.8 million shares upon listing, and an offer for sale of 33.02 million shares — representing 9% of the enlarged share capital — by way of private placement to selected investors.
Of the 70 million public issue shares, 20 million shares (5.5% of the enlarged issued capital) will be made available for application by the Malaysian public, three million shares (0.8%) for application by eligible directors and employees, and 47 million (12.8%) by way of private placement to institutional and selected investors.
The issue price of the IPO has yet to be fixed. At present, UWC has an issued share capital of 296.8 million shares worth RM59.36 million.
Of the proceeds raised from the IPO, 47.8% will be used to purchase new Computer Numerical Control (CNC) machines, while 8.2% will be used to buy industrial robotic arms and material handling system, 31.3% will be for repaying bank borrowings, and the remainder will be for working capital (5%) and estimated listing expenses (7.7%).
Hong Leong Investment Bank is the principal adviser, underwriter and placement agent for the IPO.