Saliran Group inks underwriting agreement with Malacca Securities for ACE Market IPO
21 Jan 2025, 02:12 pm
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KUALA LUMPUR (Jan 21): Oil and gas pipes supplier Saliran Group Bhd has entered into an underwriting agreement with Malacca Securities, in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia.  

The company is to be listed on Bursa in March, with Malacca Securities as the principal adviser, underwriter, and placement agent.  

According to the company’s statement on Tuesday, Malacca Securities will underwrite a total of 26.80 million issue shares as part of the public issue of the IPO, of which the offer price will be determined at a later date.

Saliran’s IPO exercise encompasses a public issuance of 80.4 million new ordinary shares, representing approximately 21.0% of its enlarged share capital.  

Under the proposed IPO, the public issue comprises 19.15 million shares for the Malaysian public and 7.66 million shares for eligible persons.  

The company will also set aside 47.86 million shares for Bumiputera investors, and 5.73 million shares for selected investors through private placement.  

In a bourse filing, the company said that surplus from the allocated proceeds will be used for general working capital purposes, and that it will be placed in interest-bearing short-term deposits or money market instruments with licensed financial institutions.  

“This underwriting agreement marks an important milestone in Saliran’s path to becoming a public listed company. This IPO will help drive our growth strategy,” said Liaw Choon Wei, the managing director of Saliran, in the statement. 

“Expanding our presence in Indonesia and increasing inventory capacity are key steps in seizing emerging-market opportunities in Southeast Asia,” he added. 

Saliran is a supplier and distributor of pipes, fittings and flanges, as well as related parts and accessories, and steel products.   

The company and its subsidiaries offer a range of products that are primarily used in the oil and gas industry to support industrial processing, refining and manufacturing activities.   

Saliran has established a presence in Malaysia, and regional markets such as Indonesia, Singapore, China, South Korea and Vietnam, providing customised solutions. 

Edited ByIsabelle Francis
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