(From left) Saliran Group Bhd chief operating officer Gavin Lim Bak Teik, Malacca Securities vice-president of corporate finance Tan Sin Jiang, co-head of corporate finance Jason Chan, managing director Lim Chia Wei, Saliran managing director Dennis Liaw Choon Wei, independent non-executive chairperson Datuk Josephine Low Suet Moi, executive director William Chan Koon Wai, and chief finance officer Francis Yong Wai Kin at the prospectus launch on Wednesday. (Photo by Sam Fong/The Edge)
KUALA LUMPUR (Feb 19): Saliran Group Bhd (KL:SALIRAN), which supplies pipes to the oil and gas industry, has set its initial public offering (IPO) price at 27 sen apiece in a share sale that will raise up to RM32 million from the ACE Market.
The public issue comprising 80.4 million new shares will raise RM21.7 million, according to its prospectus launched on Wednesday. An offer for sale of 38.29 million existing shares meanwhile will gross about RM10.3 million for its selling shareholder.
Applications for the IPO shares will close on Feb 28, and the listing is scheduled for March 13.
WATCH: Saliran Group prices IPO at 27 sen apiece
Saliran is a supplier and distributor of pipes, fittings and flanges, as well as related parts and accessories, and steel products. The company has more than 19,000 unique products used in the oil and gas industry to support processing, refining and manufacturing activities.
The company is also present in international markets such as Indonesia, Singapore, China, South Korea and Vietnam.
More than one-third of the proceeds from the public issue has been earmarked for general working capital and the company has also allocated 32% for repayment of bank borrowings. The company will spend 5.5% to set up a sales office in Indonesia and 6.6% to buy machinery and delivery trucks.
The rest will be to defray listing expenses.
“The funds raised will allow us to achieve our strategic goals, including inventory expansion, operational improvements, and regional market penetration,” Saliran managing director Dennis Liaw Choon Wei said in a statement.
The public issue involves 19.15 million new shares for application by the Malaysian public, 7.66 million shares for eligible persons, and private placements totalling 54 million shares for approved Bumiputera and select investors.
Proceeds from the offer for sale through private placement to select investors will accrue entirely to Maju Alliance Sdn Bhd controlled by Liaw, executive director William Chan and chief operations officer Lim Bak Teik.
Malacca Securities Sdn Bhd is the IPO’s principal adviser, sponsor, underwriter and placement agent.
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