KUALA LUMPUR (Dec 29): Kee Ming Group Bhd, a mechanical and electrical engineering firm backed by Solarvest Holdings Bhd (KL:SLVEST), said on Monday it has secured approval for its ACE Market listing.
Timeline for Kee Ming’s initial public offering (IPO) was not disclosed in the statement announcing the approval, though a company would have six months from Bursa Malaysia’s greenlight to complete the listing.
The approval “marks an important milestone in Kee Ming’s growth journey,” said managing director Liew Kar Hoe. “The IPO will strengthen our financial position and enable us to undertake more projects or projects of higher value that support Malaysia’s industrial growth and clean energy transition.”
Renewable energy firm Solarvest holds a 30% equity in Kee Ming, which will be reduced to a little under 24% post-IPO. The proposed IPO involves both public issue of new shares and an offer for sale of existing shares at a price to be determined later.
Proceeds from the IPO’s public issue 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, according to draft prospectus posted in August.
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 company also plans to strengthen its project team by hiring 20 new personnel, acquire an enterprise resource planning system that integrates with its existing accounting system, and cover general working capital and listing-related expenses.
Meanwhile, proceeds from the offer for sale will accrue to Liew, the IPO’s sole selling shareholder. His stake will fall to 50.65% post-listing from 70% currently.
TA Securities is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO, while Eco Asia Capital Advisory serves as the financial adviser.