KUALA LUMPUR (Oct 7): HE Group Bhd (KL:HEGROUP), which debuted on the ACE Market in January, has proposed a special issue of 45.6 million new shares or 9.39% of its enlarged share capital to meet its Bumiputera equity condition.

Currently slightly over 3% of HE Group’s equity stake, or 15.1 million shares are held by Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).

The group got listed on Bursa Malaysia with one condition being to have 12.5% of its shareholding to be held by Miti-approved Bumiputera investors. The exercise will raise HE Group’s share base to 485.6 million shares.

Proceeds from the exercise will be used mainly for working capital, HE Group said. At the illustrative price of 59 sen per share, that works out to RM26.9 million in proceeds.

HE Group is principally involved in designing, supplying, installing, testing, and commissioning power distribution systems, catering to segments like semiconductor, medical devices, battery cell manufacturing and telecommunications.

The group listed on Bursa Malaysia with an initial public offering (IPO) price of 28 sen.

Its largest shareholders comprise Yong Chong Cheang (21.13% indirect stake), managing director Haw Chee Seng (20.42%) and executive director Eng Choon Leong (14.8%).

The counter closed one sen or 1.72% lower at 57 sen, giving it a market capitalisation of RM250.8 million.