KUALA LUMPUR (April 23): SKA Capital Bhd, a power infrastructure engineering company, has filed for an initial public offering (IPO) on the ACE Market of Bursa Malaysia.

The IPO will comprise a public issue of 168.1 million new shares, which represent an 18.8% stake in the company, and an offer for sale of 97.8 million existing shares that represents 8.08%, according to the draft prospectus filed with the bourse. The final offer price has yet to be determined.

Proceeds from the IPO will be used for purchase of machinery and equipment and performance bond for future projects. Funds will also be allocated for working capital and the listing expenses.

SKA Capital’s business activities comprise substation engineering services, underground utilities engineering services and trading of electrical devices, electrical equipment and construction materials for power infrastructure engineering solutions.

Under the public issue, 44.8 million shares will be made available to the Malaysian public through balloting, while nine million shares will be allocated to eligible individuals. The remaining 114.3 million shares from the public issue, along with the offer-for-sale portion, will be placed out to selected investors.

The sale of existing shares will be conducted by SKA Capital managing director, Datuk Subas Kumar Ambairam and substantial shareholder Mohammed Afique Abdullah. Following the exercise, Subas Kumar's direct stake will be reduced from 91% to 65.84%, while Afique’s shareholding will be diluted from 9% to 7.31%.

As of  March 24, SKA Capital had an order book of RM340.56 million for its substation engineering services and underground utilities engineering services, which is expected to be progressively recognised over the next two financial years.

For the financial year ended March 31, 2025, SKA Capital reported a profit after tax of RM30.8 million on a revenue of RM241.36 million.

TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO.