KUALA LUMPUR (Aug 28): Mechanical and electrical (M&E) engineering services provider Kee Ming Group Bhd is planning a listing on the ACE Market of Bursa Malaysia to raise funds for workforce expansion as well as working capital. 

According to its draft prospectus filed with Bursa Malaysia, the initial public offering (IPO) will comprise a public issue of 66.63 million new shares, of which 16.25 million will be allocated to the Malaysian public, 8.13 million to eligible directors, employees and contributors to the group’s success, and 58.5 million (42.25 million new shares and 16.25 million offer of existing shares) via private placement to selected investors.

In total, the listing will offer up to 25.5% of the group’s enlarged share capital.

Through its subsidiary Kee Ming Electrical Sdn Bhd, Kee Ming is principally involved in the provision of M&E engineering services as well as the provision of maintenance and repair services.

It has approximately 12 years of operating history in the M&E engineering services market in Malaysia since commencing business operations in 2013.

Its earnings have grown strongly in recent years, with profit after tax (PAT) rising from RM640,000 in the financial year ended March 31, 2023 (FY2023) to RM8.17 million in the financial year ended March 31, 2025 (FY2025).

Proceeds from the IPO will primarily go towards project working capital, including the purchase of equipment and materials, as well as subcontractor payments. Kee Ming currently has 50 ongoing projects with an outstanding order book worth RM142.2 million.

The funds will also be used to provide performance bonds for future projects, which typically range between 5% and 10% of the contract value and remain valid for 12 to 24 months after project completion.

The group also plans to strengthen its project team by hiring 20 new personnel, acquire an ERP (enterprise resource planning) system that integrates with its existing AutoCount accounting system, and cover general working capital and listing-related expenses.

Meanwhile, proceeds from the offer for sale will accrue to its major shareholder and managing director Liew Kar Hoe, whose stake will be pared down to 50.65% post-listing from 70% currently.

TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.