UMS share placement raises S$51.6 million

PRECISION engineering company UMS Holdings raised S$51.6 million from a placement of 40 million new shares at S$1.29 per share.

The shares were priced at a 6.9 per cent discount to the volume-weighted average price of S$1.3862 for trades done on Jan 25. The placement, with no underwriting, was 2.55 times covered, with participation from global and regional institutional investors as well as accredited investors.

The placement proceeds will be used for future capital expenditure, working capital, potential investments, joint-ventures and acquisitions, UMS said on Monday (Jan 29). Following the placement, its share base will be enlarged by 5.97 per cent to just over 710.5 million shares.

UMS will also see its pro forma net tangible assets as at Dec 31 2022 increase from 37.61 Singapore cents per share to 42.53 Singapore cents per share. Earnings per share as at Dec 31 2022 will be diluted to 13.88 Singapore cents from 14.71 Singapore cents.

“The placement will position us well to capture the myriad of new opportunities in both the semiconductor and aerospace sectors,” said Andy Luong, chairman and chief executive officer, UMS.

Shares of UMS closed down 3.7 per cent or S$0.05 to S$1.30 on Monday.