KUALA LUMPUR (Oct 11): Signature International Bhd (KL:SIGN) will house its interior fit-out and renovation subsidiaries for listing on the ACE Market under Signature Alliance Group Bhd.
The proposed initial public offering (IPO) of Signature Alliance comprises entirely of 260 million new shares at a price to be determined later, according to its draft prospectus. There is no sale of existing shares. All in all, the listing offers investors up to a 26% stake in Signature Alliance.
“We intend to centralise our corporate offices and production operations through setup of a new corporate office and production facility in Selangor,” Signature Alliance said. “In addition, we intend to acquire additional machinery and equipment for this proposed new production facility.”
Signature Alliance houses two main subsidiaries — Space Alliance Contracts Sdn Bhd and Zig Zag Builders (M) Sdn Bhd — that were formerly parked under Signature International, which is mostly known for its kitchen cabinets.
Chin Hin Group Bhd (KL:CHINHIN) controls Signature International with a 71.72% stake. The listing was first mentioned by Chin Hin managing director Chiau Haw Choon during an interview with The Edge in 2023.
Last year, Signature Alliance made a net profit of RM10.42 million on revenue of RM173.38 million. The company currently has 57 ongoing projects with a total contract value of RM663.4 million.
The public issue involves 50 million new shares to the Malaysian public and 30 million shares to eligible persons. The IPO also allocates 20 million new shares for application by entitled shareholders of Signature International.
Further, the IPO will see private placement of 125 million new shares to approved Bumiputera investors and another 35 million shares to select investors.
Proceeds from the IPO will also be used to expand its existing office in Penang and to establish a new branch in Johor. The rest will be used as working capital, repayment of bank borrowings, and to defray estimated listing expenses.
Post-listing, Chin Hin’s 50.7% stake through Signature International will be diluted to 37.5% while Signature Alliance’s chief executive officer Chang Chung Fei will hold 16.4% followed by executive director Foo Khai Shin with 13.1%.
M&A Securities is the IPO’s adviser, sponsor, underwriter and placement agent.