UCI RESOURCES DEBUTS ON LEAP MARKET AT 16 SEN

KUALA LUMPUR, March 23  -- UCI Resources Bhd, manufacturer and supplier of precast concrete products, has debuted on Bursa Malaysia’s Leading Entrepreneur Accelerator Platform (LEAP) market today at 16 sen, a premium of one sen over its offer price of 15 sen per share.

At the opening bell, 70,000 of the company’s shares were traded.

The company said the initial public offering (IPO) entails the issuance of 33.4 million new ordinary shares, which represents 10 per cent of the group’s enlarged share capital of 333.4 million shares.

Its managing director Liew Thiam Leong said based on the issue price, the group’s gross proceeds will be RM5.01 million, of which RM3 million will be used to set up the group’s new manufacturing site in Bestari Jaya, Kuala Selangor in line with its expansion plans.

“The new manufacturing site will comprise a two-storey site office as well as a storage area for raw materials, production equipment and production moulds.

“The entire new manufacturing site is expected to be completed by year-end,” he told a virtual press conference after the group’s listing ceremony today.

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Liew said the group also plans to expand its range of precast concrete products to include precast concrete jacking pipes.

“In line with the commissioning of the new product, the group also intends to acquire two spun pipe machinery, one spun pipe feeder machinery and one automatic wire caging machinery,” he said.

Meanwhile, the remaining balance of approximately RM1.01 million and RM1 million has been earmarked for the group’s working capital and estimated listing expenses, respectively.

“With our successful listing today, we will continue to make more inroads in the construction industry as the industry recovers from the impact of the COVID-19 pandemic.

“We are optimistic that with our strong track record, as reflected in the successful securement of orders for our precast concrete products for high-profile projects throughout Malaysia, we will remain resilient and adaptive as we pursue our expansion plans,” he added.

UCI Resources manufactures three main precast concrete products, namely Box Culverts, U-drains and L-shapes.

The precast concrete products are cast and cured in reusable moulds and reinforced with steel bars to increase their strength and then used for the construction of drains, tunnels and retaining walls.

-- BERNAMA