UUE Holdings to venture into subsea work post-IPO
PETALING JAYA: ACE Market-bound UUE Holdings Bhd aims to raise RM29.9mil from its initial public offering (IPO) to strengthen the group’s capital expenditure.

With an IPO price of 24 sen per share, the engineering firm is set to debut on the ACE Market on July 2.

The lion’s share of the IPO proceeds or 52.6%, which is equivalent to RM15.7mil, will be allocated for purchasing new machinery and equipment ranging from horizontal directional drilling (HDD) machines, lorries and excavators to supplement its existing machinery fleet to cater for ongoing underground work for utilities, engineering projects and other projects in its order book.

Through the proceeds, UUE intends to acquire its first maxi rig HDD machine, which will mark its first venture into subsea HDD works.

The group will be also allocating 36.3% or RM10.9mil for general working capital for subcontractor services and the purchase of construction materials to support existing and new projects.

It will also apportion 11% or RM3.3mil for listing expenses.

Meanwhile, the group plans to widen its range of underground-utility engineering solutions and expand the scale of its projects by providing subsea HDD works.

According to UUE managing director Datuk Dr Kenny Ting, the outlook for subsea HDD work is promising as global demand for reliable and efficient underwater infrastructure rises linearly with the demand for renewable-energy sources.

“Offshore wind farms represent a significant growth area that require extensive subsea cabling to connect turbines to onshore grids,” he said in a speech at the group’s prospectus launch yesterday.

“Additionally, the growing reliance on high-speed Internet and global connectivity, particularly with the recent introduction of 5G in Malaysia, is driving the robust need for subsea telecommunication cables,” Ting said.

Through its expansion into subsea HDD work, UUE is poised to benefit from positioning itself at the forefront of the field.

Ting said that the move will not only enhance the group’s technical capabilities, but open up new avenues for growth and innovation.

“We are confident that the utilisation of the proceeds for UUE to acquire more HDD machinery will set the company on the right growth path,” he said.

The group’s full suite of engineering solutions are currently offered in the southern and central regions of Peninsular Malaysia and Singapore with a focus in the electricity and telecommunications industry.

A quarter of the group’s revenue is derived from Singapore and the remainder from Malaysia, according to a geographical breakdown of the group’s revenue based on a 10-month financial period ended Dec 31, 2023.

“Moving forward, we are targeting to pursue new opportunities in the eastern regions of the peninsula.

“Of the total RM223.4mil in our order book, we have managed to secure projects worth close to RM84mil in the eastern region,” Ting said.
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ACE Market-bound UUE Holdings Bhd aims to raise RM29.9mil from its initial public offering (IPO) to strengthen the group’s capital expenditure.