KUALA LUMPUR (July 15): UUE Holdings Bhd (KL:UUE), an underground utilities engineering company, said on Monday it has secured two contracts worth RM26.93 million.

Both contracts involve installation, testing and commissioning of 11-kilovolt underground cables and accessories, UUE said in an exchange filing. UUE will have 730 days from the starting date to be informed later with an option to extend the contract period for another 365 days, the company noted.

“The contracts are expected to contribute positively to the earnings and net assets per share of the company over the duration of the contracts, upon commencement of the contracts,” UUE said.

The contracts were awarded by Komasi Engineering Sdn Bhd and Sutera Utama Sdn Bhd to UUE’s wholly owned subsidiary Kum Fatt Engineering Sdn Bhd.

Shares of UUE have nearly quadrupled since its listing on the ACE Market two weeks ago. The company’s initial public offering (IPO) raised RM38.97 million amid strong investor demand, with the public tranche oversubscribed by more than 100 times.

Apart from engineering services, the company is also involved in the manufacturing and trading of high-density polyethylene pipes.

Proceeds raised from the public issue totalling RM29.98 million have been earmarked for the purchase of machinery and equipment, such as horizontal directional drilling machines, lorries and excavators to cater for the ongoing and future projects to be secured.

UUE currently owns 18 horizontal directional drilling machines that drill tunnels for the laying of underground pipes — all of which are midi rigs.

UUE will also acquire a maxi rig drilling machine which will allow the company to venture into subsea works and expand its existing suite of underground utilities engineering offerings.

The remaining gross proceeds have been earmarked for general working capital, as well as estimated listing expenses in relation to the IPO.