UUE secures underwriting agreement for ACE Market IPO


UUE Holdings Bhd, which provides underground utilities engineering solutions, has sealed an underwriting agreement with M&A Securities Sdn Bhd, marking a significant stride towards its IPO on the ACE Market of Bursa Malaysia. 

UUE and its subsidiaries are primarily involved in the provision of underground utilities engineering solutions, with a focus on pipe laying using the horizontal directional drilling (HDD) method in addition to the open cut and micro trenching excavation methods. 

The group also manufactures and trades high-density polyethylene (HDPE) pipes, principally for its underground utilities engineering projects. 

With completed projects spanning various industries, from electrical to telecommunications, UUE has established its presence in Malaysia and Singapore with HDD solutions. 

The IPO consists of a public issue of 124.9 million new ordinary shares in UUE and an offer for sale of 37.5 million existing UUE shares. 

Of the 124.9 million public issue shares, 30.4 million will be made available to the Malaysian public through balloting, 40.6 million to eligible directors, employees and persons who have contributed to the success of UUE Group, 38.6 million reserved for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) and 15.3 million by way of private placement to selected investors. 

The offer for sale of 37.5 million existing UUE shares will be placed to Bumiputera investors approved by MITI. 

Under the terms of the underwriting agreement, M&A Securities Sdn Bhd will underwrite a total of 71 million public issue shares, encompassing the portion allocated to the Malaysian public through balloting and to eligible persons. 

The IPO proceeds are earmarked for strategic purposes, primarily financing the acquisition of machinery and equipment, including HDD machines, lorries and excavators, to support ongoing and future projects. 

Notably, the company plans to acquire a maxi rig HDD machine, expanding its capabilities into subsea HDD works. 

Additionally, a portion of the proceeds will be allocated for general working capital and estimated listing expenses related to the IPO. 

“The proceeds from the IPO will play a crucial role in fuelling our expansion efforts, enabling us to enhance and extend our services to both our current and prospective customers across Malaysia and Singapore,” UUE MD Datuk Kenny Ting said. 

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

  • This article first appeared in The Malaysian Reserve weekly print edition