KUALA LUMPUR (Jan 7): Kee Ming Group Bhd, a mechanical and electrical engineering firm, has signed an underwriting agreement with TA Securities for its listing on the ACE Market.

TA Securities will underwrite the initial public offering (IPO) shares set aside for the Malaysian public and eligible persons under the "pink form" allocations, the company said in a statement. Backed by Solarvest Holdings Bhd (KL:SLVEST), Kee Ming has sent out invitations to the Jan 21 launch of its IPO.

“Our IPO will provide the financial resources to strengthen our financial position and enable us to undertake more projects, including higher-value jobs that support Malaysia’s industrial growth and clean energy transition,” said managing director Liew Kar Hoe.

Kee Ming provides engineering services, including electrical works and installations, air conditioning, ventilation systems and fire protection systems. The company also provides engineering works for energy infrastructure, such as installing solar panels and electric vehicle charging stations.

The proposed IPO involves both a public issue of new shares and an offer for sale of existing shares at a price to be disclosed later.

Proceeds from the public issue will be used to provide performance bonds for future projects. The company also plans to hire 20 new staff to strengthen its project team, acquire an enterprise resource planning system and fund general working capital and listing-related expenses.

Meanwhile, proceeds from the offer for sale will accrue to Liew, the IPO’s sole selling shareholder, whose stake will be reduced to 50.65% post-listing from 70% currently. Renewable energy firm Solarvest holds a 30% equity in Kee Ming, which will be reduced to a little under 24% post-IPO.

TA Securities is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO while Eco Asia Capital Advisory is the financial adviser.