KUALA LUMPUR: Uni Wall APS Holdings Bhd made a strong debut on Bursa Malaysia’s Leap Market this morning at 20 sen, a 25% or 4 sen premium to its offer price of 16sen.
At 11.32 am, the building façade specialist’s shares were still trading at 20 sen with 6,300 shares done, giving it a market capitalisation of RM73.14 million.
The listing exercise entails the issuance of 45.70 million new shares, representing 12.5% of its enlarged issued share capital, at an issue price of RM0.16 per share to selected sophisticated investors.
Uni Wall raised RM7.31 million in proceeds, of which approximately RM3.50 million will be utilised to set up a new factory on the vacant land adjacent to its existing factory and head office in Semenyih, Selangor.
The total estimated cost for the new factory is approximately RM13.2 million, including foundation works, steel structure and roofing works, mechanical and electrical works, plumbing, external curtain wall works and purchase of machinery for cutting, punching, drilling and welding.
The remaining capital expenditure for the new factory of approximately RM9.7 million will be funded through internally generated funds and/or bank borrowings.
The new factory will increase the company’s fabrication capacity, which is essential to cater to the increasing market demand.
The fabrication capacity is expected to be increased from approximately 49,000 square metres to approximately 100,000 square metres of panels per month upon its commission by the first quarter of this year.
The group also plans to utilise RM3.01 million from the proceeds raised for working capital purposes, while the remaining RM0.80 million will be used to defray the listing expenses.
“We are immensely proud of our hallmark moment today and we are also deeply grateful to all our investors whose belief in our vision to grow the Company made today possible,” Uni Wall managing director and CEO Siow Hon Yuen said in a statement today.
‘‘Not just Uni Wall but the whole industry’s model and dynamics are changing too. In the past, a RM10 million project was considered a very big project but nowadays, projects are going beyond this number. In fact, we have recently tendered a few projects totaling about RM1.4 billion, both locally and in Melbourne, Australia. With these changes, we started to feel that Uni Wall should not stay in its comfort zone,” he added.
Siow noted that the group will try to step up and expand its market share in the industry.
On that note, he said the group had decided to take itself to another level to list on the Leap Market, in order to raise funds to enhance its production capacity and working capital.
