SINGAPORE – A local semiconductor firm is eyeing a secondary listing on the Malaysian stock exchange to expand its investor base and boost stock liquidity.

The intended listing on Bursa Malaysia’s main market will also provide additional opportunities to access different equity markets to raise funds, UMS Holdings said in a bourse filing on July 17.

No application has been made to Securities Commission Malaysia yet, it added.

Chief executive Andy Luong told The Straits Times on July 18 that expanding his firm’s manufacturing footprint in Malaysia, which boasts an “established” semiconductor ecosystem, is another goal.

“With the increasing shift of semiconductor supply chains into the South-east Asian region, UMS stands to be a key beneficiary of this trend,” Mr Luong said.

“Our major global customers have also committed to grow their operations in the region – especially in Singapore and Malaysia.

“With UMS’ strong presence in Singapore and Malaysia, we will be well positioned to meet new demands of our key customers going forward.”

Mainboard-listed UMS Holdings is based in Singapore and has production facilities here, Malaysia and the United States. The firm declined to reveal its clients, but local stockbrokers identify US chip giant Applied Materials as a key customer.

The news comes after Ultimate Manufacturing Solutions, a wholly owned subsidiary of UMS Holdings, acquired some 235,000 sq ft of leasehold industrial land in Penang, Malaysia, for RM15.2 million (S$4.4 million). The space, adjacent to UMS Holdings’ existing factory in Penang, expands the group’s portfolio to more than 1.2 million sq ft in Singapore and Malaysia.

UMS Holdings’ potential listing in Malaysia follows local pawnbroker ValueMax’s announcement in June that Well Chip, an investment company formed to own shares in ValueMax, will list on Bursa Malaysia on July 23.

UMS shares closed up 2.52 per cent at $1.22 on the Singapore Exchange on July 18.