UWC redirects proposed placement funds from debt repayment to expansion
The revised allocation raises factory expansion funding to RM230.13 million and working capital funding to RM150.43 million.
UWC Bhd has revised its proposed RM384.13 million private placement, moving RM80.46 million previously allocated for repaying borrowings to factory expansion and working capital. Maybank Investment Bank disclosed the change on the group's behalf in a bourse filing on Oct 8.
Under the revised plan, expansion of the existing manufacturing facility will receive RM230.13 million, up from RM200 million. This represents roughly 60% of the expected proceeds and is intended for use within 24 months. Working capital funding increases from RM100.09 million to RM150.43 million, with the balance covering placement expenses.
The proposed placement would issue up to 55.19 million shares, equivalent to 5% of UWC's issued share base. Expected proceeds assume a price of RM6.96 per share. It would be the group's first equity fund-raising since its 2019 listing.
UWC said the expansion would enable it to move beyond component supply and manufacture complete equipment for an existing wafer fab customer. The company said the placement would fund production facilities, machinery, assembly infrastructure and related working capital needed for the manufacturing transfer.
The group had reported bank borrowings of RM105.23 million as at Sept 30. Although those borrowings will remain, UWC estimated that the equity injection would lower gearing from 0.22 times to 0.12 times and increase net assets per share from 43 sen to 74 sen.
UWC shares ended Thursday at RM7.99, giving the group a market value of RM8.82 billion.
