Mainboard-listed semiconductor firm UMS Holdings has applied to the Securities Commission Malaysia for its proposed secondary listing on the Main Market of Bursa Malaysia.
The proposed secondary listing does not involve any offering of shares, and is subject to the final approvals of the relevant authorities, including the Securities Commission Malaysia, says the company in a Dec 31 bourse filing.
The company will seek shareholders’ approval at an extraordinary general meeting after receiving all relevant regulatory approvals.
The board of UMS Holdings first announced the proposed secondary listing in a July 17 bourse filing. It said the move would broaden the company’s investor reach and widen its investor base, and potentially increase the liquidity of the company’s shares.
It would also enable UMS Holdings to tap into additional platforms for future fundraising and provide it with the flexibility to access different equity markets to raise funds.
On July 1, UMS's wholly-owned subsidiary, Ultimate Manufacturing Solutions, announced that it has invested RM15.23 million ($4.5 million) to acquire a new 5.38 acres, or approximately 235,000 sq ft, of a 60-year leasehold industrial land site in Penang Science Park North, Malaysia.
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In late May, Prime Minister Anwar Ibrahim pitched the nation as a “neutral and non-aligned location for semiconductor production”, and targeted 500 billion ringgit in investment for its semiconductor industry.
UMS Holdings held its IPO on the Singapore Exchange back in 2001, where it raised $51.6 million via a placement of 40 million new shares at $1.29 each. About a decade later, it attempted a dual listing in Korea to tap the semiconductor ecosystem there. But a non-Korean company ahead of UMS in the application was caught for fraud, and the dual listing eventually did not go through.
As at 2.27pm, shares in UMS are trading flat at $1.03. Shares in the company have fallen 22.6% year to date.
