KUALA LUMPUR (Jan 21): Kee Ming Group Bhd, a mechanical and electrical engineering firm, is seeking to raise RM31.5 million from its ACE Market initial public offering (IPO) on Bursa Malaysia, priced at 38 sen per share, valuing the company at RM123.5 million post-listing.
Applications for the IPO will close on Jan 27, and the group is scheduled for listing on Feb 12, according to its prospectus filed with Bursa on Wednesday.
Backed by Solarvest Holdings Bhd (KL:SLVEST), 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.
Kee Ming is raising RM25.3 million from the public issue of new shares, according to its prospectus. It has earmarked 51.3% or RM13 million of the proceeds for supporting future projects and has allocated 15.8% or RM4 million for the provision of performance bonds.
The company also intends to expand its project team by hiring 20 additional staff, invest in an enterprise resource planning system, and meet working capital as well as listing-related expenses.
The IPO involves the public issue of 66.63 million new shares and an offer for sale of 16.25 million existing shares.
According to its prospectus, 16.25 million shares will be made available to the Malaysian public, and 8.13 million shares will be made available to eligible persons. Additionally, 40.6 million shares will be placed out to Bumiputera investors by way of private placement, while 17.9 million shares will be for selected investors via private placement.
Proceeds from the offer for sale will go to managing director Liew Kar Hoe, the sole selling shareholder, whose shareholding will be diluted to 50.65% following the listing from 70% currently. Renewable energy company Solarvest, which holds a 30% stake in Kee Ming, will see its interest reduced to 23.9% after the 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.