UCI Resources optimistic on expansion plans

By ASILA JALIL

UCI Resources Bhd is optimistic of its expansion plans after it debuted at a one sen premium of 16 sen per share on Bursa Malaysia Securities Bhd’s Leading Entrepreneur Accelerator Platform (LEAP) Market yesterday against its offer price of 15 sen per share.

The precast concrete products manufacturer and supplier is the fifth IPO on the stock exchange this year, and the second to list on the LEAP Market after packaging manufacturer Jishan Bhd’s admission on Feb 8.

UCI Resources MD Liew Thiam Leong said the group expects to raise more than RM5 million from the listing where it plans to utilise RM3 million of the gross proceeds to set up new manufacturing site in Bestari Jaya, Kuala Selangor.

The new site, measuring 522,738 sq ft, will comprise a two-storey site office and a storage area for raw materials, production equipment and production moulds.

The expected completion for the new site is by the end of this year.

“With our successful listing today, we will continue to make more in-roads in the construction industry as the industry progressively recovers from the impact of the Covid-19 pandemic.

“We are optimistic that with our strong track record, which is reflected in the successful securement of orders for our precast concrete products for high-profile pro- jects throughout Malaysia, we will remain resilient and adaptive as we pursue our expansion plans,” Liew said after the company’s virtual listing ceremony yesterday.

He said the remaining balance of RM1.01 million and RM1 million will be used for the group’s working capital and estimated listing expenses respectively.

The group also intends to widen the range of its precast concrete products to include concrete jacking pipes with the expansion of its manufacturing site.

The IPO exercise entails the issuance of 33.4 million new ordinary shares which represent 10% of UCI

Resources’ enlarged share capital of 333.4 million shares at an issue price of 15 sen per share.

UCI Resources manufactures three main precast concrete pro- ducts, namely box culverts, U-drains and L-shapes used for drain, tunnel and retaining wall construction.

Since June last year, the group has begun manufacturing sample reinforcement earth wall panels for a local original equipment manufacturer customer.

For its financial year ended Dec 31, 2020, the group’s revenue stood at RM20.68 million, while its profit after tax came in at RM1.67 million.

Shares of UCI Resources settled at 18.5 sen at close yesterday, with 4.53 million shares changing hands.

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