KUALA LUMPUR, June 17 — Integrated engineering supporting services provider, UWC Bhd, aims to raise RM57.4 million from its initial public offering (IPO) on Bursa Malaysia, slated for July 10.
Executive director/group chief executive officer Datuk Ng Chai Eng said RM27.4 million of the proceeds will be used to purchase new Computer Numerical Control (CNC) machines to boost its production capacity and efficiency.
“We currently have 166 CNC machines and plan to purchase another 29 within the next three years from the date of our listing,” he told reporters after the launch of the company’s prospectus here today.
UWC is principally involved in the provision of precision sheet metal fabrication, value-added assembly services and fabrication of precision machined components.
Ng said the new machines are expected to boost UWC’s maximum production capacity by 18.6 per cent, from 480,048 hours per annum to 569,100 hours per annum.
“At the moment, the estimated utilisation rates of our existing CNC machines are already between 85 per cent and 95 per cent,” said Ng.
He said balance from the proceeds would be used for repayment of bank borrowings, working capital and listing expenses.
UWC’s IPO entails a public issue of 70 million new shares and an offer for sale of 33.01 million existing shares by way of private placement to selected investors.
Upon its listing, the company would have a market capitalisation of RM300.78 million, based on the issue/offer price of 82 sen per share and its enlarged share capital of 366.8 million shares.
Hong Leong Investment Bank would act as the company’s principal adviser, underwriter and placement agent for the IPO.
For the financial year ended Dec 31, 2018 (FY18), UWC registered a net profit of RM31.22 million — 110.08 per cent higher compared with RM14.86 million in FY17.
Revenue grew 48.11 per cent to RM136.49 million from RM92.16 million previously. — Bernama
