KUALA LUMPUR (Dec 4): Terengganu-based mechanical and engineering services provider Enproserve Group Bhd has filed for an initial public offering (IPO) on Bursa Malaysia’s ACE Market to raise funds for its business expansion.

The IPO will involve a public issue of 210 million shares, representing 20% of its enlarged share capital, plus an offer for sale of 105 million existing shares by its managing director Azman Yusof, who is the company’s sole shareholder, at a price to be determined later.

Azman’s equity interest in Enproserve will fall to 70% after the listing exercise.

As part of the offering, a large bulk of the IPO shares, equivalent to 139.2 million shares, will be placed out privately to selected investors. Only 52.5 million shares will be allocated to the Malaysian public, with 18.3 million shares reserved for eligible directors, employees and contributors to the group.

Enproserve specialises in plant maintenance, turnaround services, engineering, procurement, construction and commissioning (EPCC) activities, as well as facility management.

The group currently holds 19 ongoing contracts across Johor, Melaka, Terengganu and Pahang, with durations extending from 2024 to 2029 and options for further extensions.

Proceeds from the IPO will be utilised for the purchase of new machinery and equipment, as well as the setting up of a crane depot facility in Paka along with bank loan repayments.

The company also allocated some of the funds for working capital, with the rest to defray listing expenses.

“As part of the business expansion, our group intends to set up a crane depot facility with a workshop in Paka, Terengganu, to provide a dedicated space for the maintenance, repair and temporary storage of our cranes before their deployment to customers’ sites,” said Enproserve.

This initiative is part of a broader strategy to expand its fleet by acquiring additional cranes and vehicles, particularly to support operations at the Petronas Pengerang Integrated Complex in Johor.

KAF Investment Bank Berhad is the principal adviser, sponsor, underwriter and placement agent for the IPO.