KUALA LUMPUR (March 25): Johor-based waste management services provider 5E Resources Holdings Bhd, which is seeking a listing on Bursa Malaysia's ACE Market, said it has signed an underwriting agreement with TA Securities Holdings Bhd.
TA Securities will underwrite 77 million shares for application by the public, and another 35 million shares offered to eligible directors, employees and other persons who have contributed to the success of the company, said 5E Resources in a statement on Wednesday.
These shares form part of the public issue of 304.5 million new shares, with the balance 192.5 million shares to be offered to government-approved Bumiputera investors through private placement, the company said.
The initial public offering (IPO) also includes an offer for sale of 154 million existing 5E Resources shares to selected investors by way of private placement.
5E Resources executive director and CEO Lim Te Hua said in the statement that the underwriting agreement marks a significant milestone in the progress of its listing. The company is targeting to list in the second quarter of this year.
“We are encouraged by the strong support from TA Securities and look forward to advancing our IPO journey. This exercise will strengthen our capital base and support our expansion plans, including the development of new facilities and enhancement of our recovery and recycling capabilities. We remain focused on delivering sustainable growth while supporting Malaysia’s environmental and circular economy objectives,” said Lim.
The company, which plans to expand into Perak, intends to use the IPO proceeds to build a new scheduled waste management in the state's Batang Padang district. The new facility is estimated to cost RM110.66 million, including machinery and equipment.
5E Resources, which has 18 years of operating history in Johor, provides scheduled waste management services, including testing, collection, recovery and recycling. The company also trades in chemicals and recovered products. It currently manages 34 of the 77 regulated scheduled waste categories.
Proceeds from the sale of existing shares will go to 5E chairperson Loo Sok Ching, shareholders Wong Kim Fatt and Ban Kim Wah, CEO Lim and chief operation officer Shankar Narasingam.
TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.