The proceeds will go towards UMS’s future capital expenditure requirements, working capital and future business development such as potential investments, joint ventures (JVs) and collaborations as well as mergers and acquisitions (M&As).
"The strong response to the group's placement underscores our attractive valuation and investors' confidence in our growth strategy and bright prospects. The placement will position us well to capture the myriad of new opportunities in both the semiconductor and aerospace sectors,” says Andy Luong, chairman and CEO of UMS.
“The semiconductor industry continues to be driven by the surge in artificial intelligence (AI) demand and robust electric vehicle (EV) growth in the region, especially as countries increasingly adopt greener options to reach their carbon reduction targets. The group is also well-placed to capitalise on the post-Covid aviation boom as air travel is enjoying a sharp rebound worldwide,” he adds.
The placement shares will enlarge UMS’s share base by 5.97% to just over 710.5 million shares.
See also: Sanli Environmental raises $4 million from placement, wins $105.3 million contract
Shares in UMS closed 5 cents lower or 3.7% down at $1.30 on Jan 29.
