Friday 29 Mar 2024
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KUALA LUMPUR (June 17): Main Market-bound integrated engineering supporting services provider UWC Bhd is aiming to raise RM57.4 million from its initial public offering (IPO) on Bursa Malaysia.

UWC is principally involved in the provision of precision sheet metal fabrication and value-added assembly services as well as the fabrication of precision machined components.

In a statement today in conjunction with its prospectus launch, UWC said its IPO entails a public issue of 70 million new shares and an offer for sale of 33.01 million existing shares at an issue/offer price of 82 sen per share.

It said of the 103.01 million shares, 20 million shares new shares will be made available to the Malaysian public, 3 million to eligible directors and employees, and 47 million shares via private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry, while the 33.01 million existing shares will be for selected investors via private placement.

UWC said upon its listing, the company will have market capitalisation of RM300.78 million based on the issue/offer price of 82 sen and its enlarged share capital of 366.80 million shares.

It said that from the RM57.4 million, it has earmarked RM32.1 million for the purchase of new machinery and equipment to support its production activities, RM18 million for repayment of bank borrowings, RM2.9 million as working capital and the remaining RM4.4 million for listing expenses.

UWC executive and group chief executive officer Datuk Ng Chai Eng said the firm currently has 166 computer numerical control (CNC) machines.

"The additional 29 CNC machines which we plan to purchase over the next three years from the date of our listing will support our production capacity expansion," said Ng.

Hong Leong Investment Bank is the principal adviser, underwriter and placement agent, while WYNCORP Advisory Sdn Bhd is the corporate finance adviser.

UWC is tentatively slated to be listed on July 10.

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