KUALA LUMPUR (Sept 10): ACE Market-bound Solar District Cooling Group Bhd announced on Tuesday that the 21.19 million new shares offered to the Malaysian public have been oversubscribed by 144.08 times.
The building management systems company received a total of 31,678 applications for over 3.07 billion shares, valued at approximately RM1.17 billion, from the Malaysian public, according to its statement.
Solar District's initial public offering (IPO), priced at 38 sen per share, involves a public issue of 118.67 million new shares, with no separate tranche for the sale of existing shares.
The company aims to raise RM45.09 million from the IPO. All in all, the listing offers investors up to a 28% stake in the company.
Solar District said that 15,307 applications for 1.36 billion shares were received for the Bumiputera portion, representing an oversubscription rate of 127.06 times.
For the public portion, 16,371 applications were submitted for 1.72 billion shares, representing an oversubscription rate of 161.09 times.
The company also confirmed that the 21.19 million shares available for application by eligible directors, employees, and those who have contributed to its success have been fully subscribed.
Additionally, the 76.29 million shares made available through private placement to selected investors have also been fully taken up.
Solar District specialises in building management systems, solar thermal solutions, and energy-saving services. It also undertakes system and equipment maintenance projects, including gas-fired chillers and chilled water systems.
The company’s top clients — a concession company, a construction company, a facilities management company, and a building owner — account for more than half of its total revenue for the financial year 2023 (FY2023).
Solar District has allocated approximately 41.5% of the IPO proceeds for the purchase of materials, 28.1% for general working capital, 11.1% for tender bonds for future projects, 9.5% for listing expenses, 5.6% for capital expenditure, and 4.2% for the expansion of its headquarters.
Currently, managing director Edison Kong controls 90% of the company's share capital, while executive director Eileen Liuk holds the remaining 10%. Post-IPO, Kong's stake will be reduced to 64.8%, and Liuk’s holdings will decrease to 7.2%.
Solar District is slated for listing on Sept 19. Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO.