From left: UUE Holdings chief financial officer Vincent Wong, managing director Datuk Kenny Ting, M&A Equity Holdings Bhd managing director of corporate finance Datuk Bill Tan, M&A Securities Sdn Bhd head of corporate finance Gary Ting and deputy head of corporate finance Rachel Ho.
PETALING JAYA: ACE Market-bound UUE Holdings Bhd has several plans in the pipeline as it looks to establish itself as the preferred underground utilities engineering solutions provider in Malaysia and Singapore.
If successful, the group may join the ranks of the big players such as Telekom Malaysia Bhd
, which had previously ventured into the deployment and maintenance of subsea 5G cables in the country.
Also known as submarine or undersea cables, the specialised cables are laid on the seabed between land-based stations to carry telecommunications signals across stretches of ocean and sea.
As the country looks forward to the rollout of a second 5G network this year, UUE could stand to benefit from this as it mainly serves the electricity and telecommunication end-users both in Malaysia and Singapore.
Managing director Datuk Dr Kenny Ting told StarBiz that speed, capacity, connectivity and reliability were a priority as the world becomes more data-driven.
“This is where the potential of subsea 5G cables come into play. By expanding our suite of services to include subsea horizontal directional drilling (HDD) works, we believe that we will be able to cater to such job opportunities,” he says.
He explains that HDD drilling enables the installation of underground cables and pipelines along routes that could be obstructed by roads, pavements, monsoon drains, building structures, rivers and forests.
Ting added there were few specialising in the subsea HDD works locally, hence the focus on establishing itself in this segment in anticipation of future demand is key. The group will plan to offer mainly onshore to offshore connections.
He said the listing on the stock exchange was timely in particular when group was tendering for new projects.
UUE will target to raise RM30mil from its initial public offering (IPO), in which proceeds will go towards business expansion through the purchase of new machinery and equipment, and working capital.
UUE’s IPO entailed a public issue of 124.9 million new ordinary shares and an offer for sale at an IPO price of 24 sen a share, which accounts for 26.7% of the group’s enlarged issued share capital.
Ting said part of the group’s plans include the purchase of the group’s first Maxi rig HDD machine, which is much larger than the existing ones.
The machine will cost about RM7mil and will allow for underwater works like surveying and mapping pre-drilling.
“The opportunity for jobs which may require subsea HDD works include amongst others, installation of fibre optics, oil and gas pipelines, power cables which include the export of renewable energy, and water pipes,” he said.
Other than the machine, UUE will also consider purchasing lorries and excavators to supplement its existing machinery fleet in catering for ongoing projects as well as any future jobs.
“Having the additional machinery will provide not just the ability to scale up our capabilities in anticipation of growth for our underground utilities engineering projects, but also flexibility in mobilising our machinery, and improving our project delivery to better serve our customers,” he said.
Besides this, the group is keen to establish a larger market presence in Terengganu, Pahang and Kelantan after securing RM83.9mil worth of projects there already.
“As our main focus for our solutions are telecommunications and electrical supply industries, we believe that existing and future initiatives from the government in strengthening the utility infrastructure in more rural areas such as the eastern region of the peninsula will offer us foreseeable demand for our services,” added Ting.
The listing will also enable UUE to retain its existing talent whilst enticing new talent to join its ranks
On its current balance sheet, Ting said UUE’s unbilled order book stood at RM223mil as of April 30, 2024.
“The order book is set to be realised over the next three years but our focus will be to replenish it, with a focus on Singapore and expanding to more eastern states in the peninsula.
“We also hope that once we begin offering subsea HDD works, that it will also open up a new business segment as a catalyst for our future growth,” he said.
Meanwhile, in anticipation of UUE’s listing that is set to take place on July 2, 2024, Ting said it would propel UUE’s position to the next stage of growth.
“Aside from lending credibility and brand awareness within the industry, we are excited about what the listing will bring to the future of our group.”
It was reported that UUE’s shares had been oversubscribed by 103.83 times.
