KUALA LUMPUR (July 13): After spending a year and eight months on Bursa Malaysia's LEAP Market, oil and gas (O&G) support services provider Steel Hawk Bhd is pursuing a transfer to the ACE Market.
Major shareholders Radiant Capital Sdn Bhd (with a 45.9% stake) and Datuk Sharman Kristy Michael (32.1% stake) had in a letter this week requested the Steel Hawk’s board to consider the transfer.
In response to the letter, the board ― except for Sharman, his wife Datin Annie V Sinniah, Salimi Khairuddin and Khairul Nazri Kamaruddin ― deliberated and agreed to undertake the transfer, the company said in a bourse filing on Wednesday (July 12).
Salimi and Khairul are directors and shareholders of Radiant Capital.
In particular, this involves the voluntary withdrawal of Steel Hawk’s LEAP Market listing, listing on the ACE Market, as well as the adoption of a new company constitution to facilitate the transfer.
Besides the transfer of its 160 million share base to the ACE Market, Steel Hawk said the proposal will also entail a public offering of new shares for the purpose of complying with the ACE Market’s public shareholding requirement, subject to approval and conditions from Bursa Securities.
As at the last practical date, 22% of the company's issued shares were held by six public shareholders, versus the requirement for a minimum of 25% of its share base to be in the hands of at least 200 public shareholders not holding less than 100 shares each.
“The quantity, group of investors, basis of allotment, if applicable, issue price and basis of determining the issue price for the new shares to be issued as part of the proposed listing shall be determined at a later stage and disclosed, where applicable, in the circular to shareholders of Steel Hawk for the proposals and prospectus pursuant to the proposed listing,” the company added.
Steel Hawk said the transfer will further enhance the company’s reputation and accord it greater recognition from various stakeholders ― including its employees, customers, suppliers, business associates, financial institutions as well as investors.
Additionally, the company said the transfer is expected to increase the liquidity of its shares as well as provide the company access to a bigger fundraising platform to support the company’s expansion plan and to realise the company’s long-term growth potential.
The proposed transfer is subject to the approval of its shareholders at an extraordinary general meeting to be held in the third quarter of 2023 (3Q2023), as well as Bursa Securities and the Securities Commission Malaysia.
It is worth noting that in spite of Sharman, Annie, Salimi and Khairul being deemed interested parties, Steel Hawk said they are not required to abstain from voting in the EGM as the proposals are not regarded as related party transactions and no parties are conflicted under the provisions of the LEAP Market Listing Requirements.
“Since the proposals affect the rights of all shareholders of Steel Hawk and no specific shareholder or group of shareholders shall benefit from the proposals, all shareholders of Steel Hawk are entitled to vote in respect of their direct and indirect shareholding on the resolutions for the proposals,” it said.
Steel Hawk said its transfer to the ACE Market is expected to be completed by 2Q2024.
The company was listed on the LEAP Market back on October 29, 2021, where it ended its debut trading day at 50 sen, up 30 sen or 150% versus its initial public offering (IPO) price of 20 sen.
Shares in Steel Hawk were last traded at 28 sen on May 9, still up eight sen or 40% versus its IPO price. At 28 sen, the company is valued at RM44.8 million.