KUALA LUMPUR (June 12): Rosado Bhd, an engineering contractor specialising in mechanical and electrical (M&E) works for data centre projects, has filed for an initial public offering (IPO) on the ACE Market to raise funds for working capital and project execution.
The proposed listing involves a public issue of 689 million new shares and an offer for sale of 305.5 million existing shares at a price to be determined later, according to its draft prospectus. In total, the IPO will offer up to a 25.5% stake in the company.
Proceeds from the IPO will be used mainly for performance bonds, which are bank guarantees required for project execution. As at end-April, the group had provided RM40.7 million in performance bonds against an RM817.1 million order book. It may need up to RM163.4 million more for projects worth RM1.63 billion currently under tender.
The company also plans to use part of the proceeds to purchase project equipment, including power transformers, earthing transformers, telecontrol systems, and control and protection relay panels. The remaining proceeds will be used for subcontractor payments, project materials and listing expenses.
Rosado is principally involved in M&E engineering solutions, focusing on electrical works for data centre projects. It also undertakes related civil and structural works, including earthworks, trenching, ducting and foundation works, as well as maintenance services for power substations and distribution infrastructure.
For the financial year ended May 31, 2025, the group recorded a profit after tax of RM100.2 million on revenue of RM345.9 million.
Under the IPO, the public issue comprises 195 million shares for the Malaysian public and 38 million shares for eligible persons. Another 274 million shares will be placed out to selected investors via private placement, while 182 million shares are allocated to Bumiputera investors.
The IPO shares will be sold via private placement to Bumiputera investors, with all proceeds going to TSLIM Holdings Sdn Bhd, the private investment vehicle controlled by managing director and CEO Datuk Lim Tiew Sin and his family.
After the IPO, TSLIM Holdings’ stake in the company will decrease from 97% to 72.03%.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.