This article first appeared in The Edge Financial Daily on September 25, 2019 - October 1, 2019

KUALA LUMPUR: Main Market-bound integrated industrial property solutions provider AME Elite Consortium Bhd aims to raise RM111.1 million from its initial public offering (IPO) on Bursa Malaysia for business expansion.

AME’s IPO comprises a public issue of 85.4 million new shares representing up to 30% of its enlarged issued share capital, along with an offer-for-sale of 42.7 million existing shares, at an issue price of RM1.30 per share. This means the entire IPO deal amounts to RM166.6 million, of which RM55.5 million would go to the selling shareholders via the offer-for-sale.

Group managing director Kelvin Lee Chai said the proposed listing is the culmination of AME’s track record in undertaking design-and-build projects for large manufacturing plants and industrial buildings in Malaysia, as well as developing industrial parks in Johor under the “i-Park” brand.

“Our integrated business model serves us well. Our expertise in design, construction, sale and lease enables us to uphold a track record of quality and speed in delivering comprehensive industrial property solutions for enterprises in various industries.

“We believe it is timely for AME to bring our distinct brand of i-Park to rapidly industrialise states across Peninsular Malaysia, allowing us to play our role to support the country’s increasing trend in foreign direct investment, and enabling international and local corporations to advance towards Industry 4.0,” said Lee in a statement following the launch of the group’s prospectus.

Of the proceeds to be raised, RM69.1 million will be allocated for future industrial property development and investment projects, including land acquisitions and joint ventures, while RM23 million will be set aside for working capital for the i-Park@Senai Airport City development — including funding the initial development cost for Phase 3 of the project. Meanwhile, RM9 million will be set aside to complete the expansion of the group’s precast concrete fabrication capacity, while the remaining RM10 million will be used to defray its IPO expenses.

Of the new shares to be issued, 8.5 million shares will be put up for public application, and another 8.5 million shares will be set aside for eligible directors and employees. Meanwhile, it will place out 19.2 million shares to institutional and selected investors, and 49.1 million to bumiputera investors. As for the 42.7 million offer-for-sale shares, they will also be placed out to institutional and selected investors.

Applications for AME’s IPO opened yesterday and will close at 5pm on Monday. It is scheduled to be listed on Oct 14.

CIMB Investment Bank Bhd is the principal adviser, managing underwriter, joint underwriter and joint book runner, while RHB Investment Bank Bhd is the joint underwriter and joint book runner for the IPO.