KUALA LUMPUR (Oct 12): Bursa Malaysia’s largest LEAP Market-listed company Lim Seong Hai Capital Bhd (LSH Capital) has proposed a transfer to the ACE Market.
The transfer will enhance LSH Capital’s credibility and reputation among investors while also reflecting the construction outfit’s current scale of operations, in turn enhancing the attractiveness and marketability of the group’s shares, the company said in a bourse filing on Thursday.
“The board also considers the proposed transfer of listing to be timely and beneficial to the company’s future growth and its ability to raise funds from the capital market for further expansion, if required,” it added.
LSH Capital noted that having been listed on the LEAP Market since July 2021, it has met the two-year listing requirement for an ACE Market transfer.
However, the company noted that an exit offer will not be extended to minority shareholders, which will require the procurement of letters of undertaking from all minority shareholders to waive their entitlement to an exit offer and appointment of an independent adviser.
The undertaking will also have minority shareholders continue to hold to their shareholding until the conclusion of an extraordinary general meeting (EGM) for the proposed transfer.
Overall, LSH Capital’s proposed transfer to the ACE Market is subject to the requisite approvals of the company’s shareholders, Bursa Securities, the Securities Commission and the Ministry of Investment, Trade and Industry.
The transfer was proposed by the Lim siblings — LSH Capital’s non-executive chairman Tan Sri Lim Keng Cheng, executive vice-chairman Datuk Lim Keng Guan, group managing director Lim Pak Lian and managing director in the machinery, hardware and tools division Lim Keng Hun.
Lim Seong Hai Resources Sdn Bhd, which holds 76.94% of LSH Capital, is wholly owned by Lim Seong Hai Holdings Sdn Bhd (LSH Holdings). The four siblings each hold a 25% stake in LSH Holdings.
Keng Guan also directly owns a 4.189% stake in LSH Capital, marginally more than Pak Lian's 4.185%, while both Keng Cheng and Keng Hun own 4.183% each.
AmInvestment Bank Bhd has been appointed as the principal adviser and sponsor to LSH Capital for the proposed transfer, while Astramina Advisory Sdn Bhd has been appointed financial adviser.
LSH Capital expects the proposed transfer to be completed in the third quarter of 2024. It expects to hold the EGM either in the final quarter of 2023, or the first quarter of 2024.
Shares in LSH Capital last traded at 88 sen on Aug 30, valuing the company at RM621.6 million. The company listed on the LEAP Market on July 30, 2021, with an initial public offering price of 13 sen.