UMS to expand reach via Bursa secondary listing

The Star

11 hours ago

An SGX sign at the Singapore Stock Exchange. — Reuters
KUALA LUMPUR: Slated to be listed on the Main Market of Bursa Malaysia on Aug 1, high-precision engineering and manufacturing company UMS Integration Ltd – currently listed on the Mainboard of the Singapore Exchange (SGX) – says it will continue to expand its role within the semiconductor and aerospace value chains.
Chief executive officer Andy Luong said the Singapore-headquartered company's impending secondary listing will enhance the group's visibility across the South-East Asian region and boost its position as an integrated service provider for global chip companies.
'Within the semiconductor space, we see opportunities in manufacturing high-precision components used in advanced packaging solutions, which play a vital role in enabling next-generation artificial intelligence and high-performance computing applications,' he said at a press briefing here yesterday.
Given current global trade tensions, Luong added that Malaysia and Singapore are well-positioned to benefit from various outsourcing opportunities.
'We have the resources to serve the people as well, ' he said.
Executive director, group financial controller and senior vice-president of operations Stanley Loh Meng Chong said Malaysia is a suitable place for the company's secondary listing due to several factors, including its plant located in Penang.
He said UMS had pursued a dual listing in South Korea in 2010, but the plan fell through after the stock exchange regulators clamped down on overseas secondary listings following a fraud case involving a Chinese company.
Loh added that Malaysia 'is a better place to raise funds and grow the business.'
He believes that UMS is better run compared to its Malaysian peers, with stronger profit margins and dividend yields.
'In Singapore, typically our valuations are lower. We hope that by coming to Malaysia, it will help us to be valued more fairly versus our peers,' Loh said.
UMS yesterday issued its prospectus for the secondary listing, which will be undertaken by way of introduction and will not involve any issuance or offering of shares.
UMS shares will be fully fungible, meaning shareholders can transfer their shares between the SGX Mainboard and Bursa Malaysia's Main Market for trading.
TA Securities Holdings Bhd is the principal adviser, while CGS International Securities Malaysia is the financial adviser for the exercise.
At last look, UMS's market capitalisation was approximately S$945mil (equivalent to about RM3.13bil).
It recorded revenue of S$242.1mil for the financial year ended Dec 31, 2024, while profit after tax stood at S$40.6mil, translating into a margin of 16.8%.