KUALA LUMPUR (July 20): Stockbroking and corporate finance advisory firm Mercury Securities Group Bhd has signed an underwriting agreement with Public Investment Bank Bhd (PIVB) for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.

In a statement on Thursday (July 20), Mercury Securities said the IPO comprises a public issuance of 157.1 million new shares — representing 17.59% of the group’s enlarged share base of 893 million shares — as well as an offer for sale of 71.51 million existing shares — representing 8.01% of the enlarged share base — through private placement to selected investors and Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).

Of the 157.1 million under the public issue, 44.65 million will be made available to the Malaysian public, followed by 22.33 million shares to the group’s eligible directors, employees and those who have contributed to its success, 45.47 million shares are to be placed out to selected investors and the remaining 44.65 million shares to Bumiputera investors approved by Miti.

PIVB will underwrite 66.98 million issue shares made available for application by the Malaysian public and eligible persons.

“Our listing will enhance our visibility and reputation in the marketplace, and enable our directors, employees, business partners and public investors to participate in the growth and continued expansion of our business whilst increasing shareholders’ value,” said Mercury Securities’ managing director Chew Sing Guan.

He added Mercury Securities will remain focused and committed to continually provide innovative products and solutions that create value for customers and strive to exceed their expectations.

“This corporate milestone will help scale our group to new heights by tapping on new opportunities, and to respond to the evolving needs of our customers and trends in the marketplace.

To this purpose, we are committed to developing our digitalisation programme in order to innovate our products and services offerings for our customers, while we continue to automate and streamline our operations for all-round efficiency,” Chew remarked.

Mercury Securities is an investment holding company and through its wholly-owned subsidiary Mercury Securities Sdn Bhd, the group is principally involved in the provision of stockbroking, corporate finance advisory services and other related businesses, such as margin financing facilities services, underwriting and placement services, as well as provision of nominee and custodian services.

PIVB chief executive officer Lee Yo-Hunn highlighted that the investment bank will be the principal adviser, sponsor, sole underwriter and sole placement agent of Mercury Securities.

“The listing will certainly augur well for Mercury Securities to tap on the capital market for its growth and expansion plans,” he said.