Company Background

The Company was incorporated in Malaysia under the Act on 21 July 2022 as a private limited company under the name of UUE Holdings Sdn Bhd. On 21 August 2023, the Company was converted into a public limited company and adopted its present name.

The Group structure as at LPD is as follows:

The Company is principally an investment holding company. Through its subsidiaries, they are principally involved in the provision of underground utilities engineering solutions where they specialise in the HDD method of laying pipes, and also employ the open cut and micro trenching excavation methods.

Use of proceeds

1. Purchase of machinery and equipment - 52.6% (within 24 months)
2. General working capital - 36.3% (within 12 months)
3. Estimated listing expenses - 11.1% (within 1 month)

Purchase of machinery and equipment - 52.6% (within 24 months)

The Group intends to allocate RM15.8 million, representing approximately 52.6% of the gross proceeds from its Public Issue, for the purchase of machinery and equipment to supplement the existing machinery fleet to cater for its on-going underground utilities engineering projects and order book, and to scale up the existing operations to secure more projects to facilitate the anticipated growth in the underground utilities engineering operations in Malaysia and Singapore.

The details of the purchases are set out below:

The operational resources to carry out the projects depend largely on the availability of the machinery and equipment. The purchase of new machinery and equipment is in line with the increasing trend of the revenue from RM51.7 million for FYE 2021 to RM88.7 million for FYE 2023 and the anticipated growth in the order book. For FPE 2024, the Group recorded a revenue of RM103.8 million. As at LPD, the unbilled order book amounts to RM223.4 million which will be realised over the next 3 financial years. Further, the Group has participated in requests for quotations for various projects in both Malaysia and Singapore where these projects, if awarded to the company, will further increase their order book.

The new and additional machinery and equipment would increase the operational efficiencies and flexibility in the planning and coordination of the projects as they are essentials in the implementation of underground utilities engineering projects. This is expected to result in better time management of the project schedule to facilitate timely completion of the projects.

General working capital - 36.3% (within 12 months)

The Group’s working capital requirement is expected to increase in line with the growth in the business operations. An amount of RM10.9 million, representing approximately 36.3% of its gross proceeds from the Public Issue, is allocated to meet the working capital requirements for the Group’s daily operations. The breakdown of the allocation is in the manner set out below:

Business model

The Group is principally involved in the provision of underground utilities engineering solutions that specialise in the HDD method of laying pipes and employ the open cut and micro trenching excavation methods. The company also manufactures and trades HDPE pipes, primarily to support underground utilities engineering projects in Malaysia and Singapore.

The company serves the electricity and telecommunications end-user markets in Malaysia and Singapore.

The Group’s business model is as follows:

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