KUALA LUMPUR (July 3): Interior fit-out firm Adnex Group Bhd is preparing for a listing on the ACE Market of Bursa Malaysia.

Proceeds from its initial public offering (IPO) are intended to fund its expansion, serve as performance bonds for projects, and repay bank borrowings, according to Adnex’s draft prospectus filed with the bourse.

Adnex, founded and headed by two brothers, plans to expand its corporate offices, as well as establish branch offices domestically and in the Philippines and Indonesia to secure more interior fit-out projects and expand its reach in international markets.

The IPO will comprise a public issue of 90.5 million new shares and an offer for sale of 39.5 million existing shares at a price to be determined later. All in all, the share sale involves up to a 26% stake in the company.

Adnex said it specialises in providing interior fit-out services for commercial and industrial properties, mainly for use as corporate offices, food-and-beverage outlets, and sales galleries.

The company, based in Shah Alam, Selangor, has 15 ongoing projects with a total contract value of RM44.53 million to be completed progressively until 2026. In the year ended Dec 31, 2024 (FY2024), Adnex made a profit after tax of RM6.39 million on revenue of RM50.23 million.

Under the public issue, 25 million shares will be reserved for the Malaysian public under the retail offering, and 15 million shares will be allocated to eligible persons. The remaining 50.5 million shares will be offered to selected investors and approved Bumiputeras.

The sale of existing shares, meanwhile, will be offered by managing director Kan Wai Chun and his elder brother Kan Wai Peng, who is also Adnex’s executive director in charge of daily operations.

Wai Chun will offer the largest portion and cut his holdings to 55.5% from 75% currently while Wai Peng’s stake will be diluted to 18.5% from 25%.

Public Investment Bank is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.