KUALA LUMPUR (Sept 2): Engineering service firm 3REN Bhd said on Tuesday it has signed an underwriting agreement with KAF Investment Bank in preparation for its upcoming initial public offering (IPO).

The group, which specialises in providing automation solutions and engineering services, is on track to be listed on the ACE Market by the fourth quarter of 2024.

The IPO will include a public issue of 110 million new ordinary shares, which represents 16.9% of the group’s enlarged issued share capital.

Of these, 32.5 million new shares will be made available for application by the Malaysian public, 30 million for eligible directors, employees, and individuals who have contributed to the success of 3Ren, while 3.8 million will be privately placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia (Miti).

The remaining 43.7 million new shares are earmarked for selected investors through private placement.

The IPO will include an offer for the sale of up to 45 million existing shares, representing 6.9% of 3Ren’s enlarged issued share capital. These shares will be placed privately with Bumiputera investors.

“We are excited for what is to come given our plans to continuously support our growth trajectory through the use of the proceeds to strengthen our research and development capabilities, enabling us to enhance and develop new innovative solutions as well as establishing dedicated delivery centres to undertake certain product engineering services specifically related to the design and development of semiconductor chips,” said executive director and CEO Koh Dim Kuan in a statement.

“Additionally, we have set our sights on the regional front by setting up a sales and marketing office in Singapore with the aim to better serve our existing multinational customers in that region and strategically position us in close proximity to new prospective customers,” he said.

KAF Investment Bank is the principal adviser, sponsor, sole underwriter and sole placement agent.