KUALA LUMPUR (April 14): Sum Technology Bhd, an engineering services firm, has signed an underwriting agreement with Malacca Securities in preparation for its listing on the ACE Market.
Under the agreement, Malacca Securities will underwrite shares allocated to the Malaysian public and the eligible persons, Sum Technology said in a statement on Tuesday. The agreement marks another step before the company launches its initial public offering (IPO).
“The IPO will strengthen our financial position and enable us to accelerate our expansion plans, enhance our engineering capabilities, and capture opportunities in high-growth industries such as semiconductors and data centres,” Sum Technology chief executive officer Lee Thiam Hing said.
Sum Technology builds cleanrooms and other facilities with controlled environments as well as provides mechanical, electrical, process utilities and fire protection systems for mission-critical facilities.
Based in Petaling Jaya, the company also manufactures customised mechanical ventilation and air conditioning products. The IPO, which consists solely of public issue of new shares, will raise fresh funds for the company’s operations and expansion in its home market as well as abroad.
None of the current shareholders are selling down their stake in Sum Technology that made a net profit of RM5.39 million in 2024 on the back of a revenue of RM51.35 million.
Further, the company is planning to set up an office in the Philippines, its biggest foreign market, as well as intensify design and development activities. The rest of the proceeds will be used as working capital and to cover listing expenses.
Malacca Securities is also the IPO’s principal adviser, sponsor, and placement agent.