Semiconductor Players Seek Listing on Bursa Malaysia
UMS and GVT Receive Approval for Secondary Listing
Singapore-listed UMS Integration and Grand Venture Technology (GVT) have both received approval for their secondary listing on the main market of Bursa Malaysia.
UMS to Broaden Reach and Improve Liquidity
In a bourse filing on Wednesday, semiconductor manufacturer UMS said that the listing would broaden its reach and widen its investor base, potentially improving the group’s share liquidity. It would also give it access to another equity market for future fund-raising in support of the group’s growth in the coming years.
GVT Aims for Higher Valuation
GVT, another semiconductor player, announced in a separate bourse filing on Tuesday evening that it had won the approval of the Securities Commission Malaysia to go ahead with its proposed secondary listing. Last September, Bloomberg reported that the company was aiming for a higher valuation by listing in Kuala Lumpur, where initial public offerings have been on the rise.
Challenges Ahead
Both companies have stated that their proposed listing in Malaysia is still subject to change, and there is no assurance that it will materialize. The listing is also subject to conditions, such as the approval of shareholders at an extraordinary general meeting to be held later.
Market Reaction
Shares of UMS closed 0.9 per cent or S$0.01 lower at S$1.11 on Wednesday, before the news. GVT stocks closed at S$0.79, up 0.6 per cent or S$0.005.
Conclusion
The proposed listings of UMS and GVT on Bursa Malaysia are expected to bring new opportunities for the companies and the Malaysian stock market. While there are challenges ahead, the companies are confident that their secondary listing will bring benefits to their investors and stakeholders.
FAQs
Q: What are the benefits of UMS’s secondary listing on Bursa Malaysia?
A: The listing is expected to broaden UMS’s reach and widen its investor base, improving its share liquidity and providing access to another equity market for future fund-raising.
Q: What is GVT’s goal for its secondary listing?
A: GVT aims to achieve a higher valuation by listing in Kuala Lumpur, where initial public offerings have been on the rise.
Q: Are there any challenges ahead for the companies?
A: Yes, the proposed listing is still subject to change, and there is no assurance that it will materialize. The listing is also subject to conditions, such as the approval of shareholders at an extraordinary general meeting.
