The manufacturer and supplier of precast concrete products, UCI Resources Bhd was first listed on the Bursa Malaysia Leading Entrepreneur Accelerator Platform (LEAP) market today at a price of 16 sen, a premium of one sen over the offer price of 15 sen per share.
Bernama reported that at the opening of trading, a total of 70,000 units of the company's shares were traded.
According to UCI Resources, the initial public offering (IPO) included the issuance of 33.4 million new ordinary shares representing 10% of the company's total share capital of 333.4 million shares.
Managing Director, Liew Thiam Leong said, based on the issue price, the gross revenue was RM5.01 million.
He said of the total, RM3 million will be used to develop UCI Resources' new manufacturing site in Bestari Jaya, Kuala Selangor in line with its expansion plans.
“The new manufacturing site will include two floors of location offices as well as storage areas for raw materials, production equipment and production molds.
"The entire new manufacturing site is expected to be completed by the end of this year," he said during a virtual press conference after the company's listing ceremony on the LEAP Bursa Malaysia market today.
Adds Thiam Leong, his party also plans to add a range of precast concrete products by including precast concrete jack pipes.
"Along with the implementation of the new product, the company also intends to purchase two rotary pipe machines, one rotary pipe 'feeder' machine and one automatic cable locking machine," he explained.
Meanwhile, the balance of the estimated RM1.01 million is earmarked for working capital while another RM1 million is for the estimated listing expenditure.
“Following the success of today's listing, we continue to strive to record more progress in the construction industry as the sector recovers from the effects of the Covid-19 pandemic.
"We are confident that with the company's strong track record as demonstrated through the acquisition of our precast concrete product orders for high -profile projects nationwide, we will remain resilient and adaptable once we proceed with our expansion plans," he said.
UCI Resources makes three main precast concrete products, namely box sewers, ‘U-drains’ and L-shaped.
Precast concrete products go through a casting process and are maintained until they reach maturity in reusable molds and reinforced with steel rods to increase their strength before being used in the construction of drains, tunnels and retaining walls.
