PETALING JAYA: UWC Bhd made its debut today on the Main Market of Bursa Malaysia at an opening price of RM1.10, representing a 34% premium to its initial public offering (IPO) price of 82 sen.
The stock traded at a high of RM1.39 during early trade before settling at RM1.29 at noon with 156 million shares traded.
The listing exercise raised proceeds of RM57.4 million of which RM32.1 million or 56.0% will be used to purchase new machinery and equipment over the next three years, to support production activities and expand production capacity.
The new computer numerical control machines to be purchased are expected to increase UWC group’s production capacity by about 18.6% by 2022.
The group has also earmarked RM18 million or 31.3% for repayment of bank borrowings, RM2.9 million or 5% for working capital and the remaining RM4.4 million or 7.7% for estimated listing expenses.
UWC has a dividend policy where it intends to distribute a dividend of at least 20% of its annual audited consolidated profit after tax attributable to its shareholders.
“Today marks a key milestone for UWC as the IPO exercise will provide us with the platform to gain access to the capital markets for our future business expansion, strengthening the stature and corporate profile of our group and to enhance market awareness of our business,” said executive director/group CEO Datuk Ng Chai Eng.
“With the purchase of the new machinery and equipment, we are able to increase our production capacity and improve our production efficiency, in order to better serve our customers,” he said.
Hong Leong Investment Bank Bhd is the principal adviser, underwriter and placement agent while WYNCORP Advisory Sdn Bhd is the corporate finance adviser for the listing exercise.
