KUALA LUMPUR (Feb 26): Adnex Group Bhd, an interior fit-out firm, is seeking to raise RM26 million for expansion and its shareholders from listing on the ACE Market.
The initial public offering (IPO), priced at 20 sen apiece, will raise RM18.1 million for the company and another RM7.9 million for managing director Adrian Kan Wai Chun and his elder brother Kan Wai Peng, according to the prospectus launched on Thursday.
Applications will close on March 5 and the listing is scheduled for March 17.
“Adnex remains focused on its core interior fit-out business while positioning itself to capture opportunities arising from office refurbishment cycles, commercial developments, and evolving workspace requirements,” said the managing director in his speech at the prospectus launch.
WATCH: Adnex Group sets IPO price at 20 sen apiece
The company is setting aside RM6.4 million for expansion of corporate offices in Penang, Johor and Sabah, complemented by a regional push into Indonesia and the Philippines. Adnex is also upgrading and enhancing digital infrastructure as part of the expansion.
Adnex has also earmarked RM3 million as performance bonds for existing and future projects, RM1.2 million to repay bank loans, RM3.9 million for working capital and RM3.6 million to cover listing expenses.
Founded by Wai Chun and Wai Peng, Adnex specialises in providing interior fit-out services for commercial and industrial properties, mainly for use as corporate offices, food-and-beverage outlets, and sales galleries. At the IPO price, Adnex is valued at RM100 million.
The company, based in Shah Alam, Selangor, has an unbilled order book of RM66 million. About half of the orders from the past two years came from recurring customers, of which 90% are US and European multinational companies.
Public Investment Bank is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.