KUALA LUMPUR (Feb 4): Mechanical and electrical (M&E) engineering firm Kee Ming Group Bhd said the public portion of its initial public offering (IPO) was 54.16 times oversubscribed ahead of the company's listing on the ACE Market on Feb 12.
The company, which is backed by Solarvest Holdings Bhd (KL:SLVEST), said it received 9,573 applications from the public for a total of 896.38 million shares valued at RM340.66 million.
The Bumiputera portion was oversubscribed by 27.10 times, and other Malaysians by 81.22 times, it said in a statement on Wednesday.
Meanwhile, the 8.13 million IPO shares allocated to eligible persons were fully subscribed, and the 17.88 million shares offered via private placement to selected investors fully placed out.
Another 40.63 million shares set aside for identified Bumiputera investors approved by the Investment, Trade and Industry Ministry have been fully placed out, Kee Ming added.
Kee Ming’s non-independent executive director and managing director Liew Kar Hoe said the strong investor response reflected confidence in the company’s technical expertise, proven project execution track record, and long-term growth strategy.
“This support reinforces our commitment to strengthening our M&E, engineering capabilities and positioning the group for the next phase of growth following our listing,” he said.
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 company’s IPO comprised 82.88 million shares, including a public issue of 66.63 million new shares and an offer for sale of 16.25 million existing shares.
The company is raising RM25.3 million from the public issue of new shares, with the proceeds earmarked to support future projects, provide performance bonds, expand its project team through the hiring of 20 additional staff, invest in an enterprise resource planning system, and fund working capital requirements as well as listing-related expenses.
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. Solarvest, which holds a 30% stake in Kee Ming, will see its interest reduced to 23.9%.
TA Securities Holdings Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter while Eco Asia Capital Advisory Sdn Bhd serves as financial adviser for the IPO.