KUALA LUMPUR (Oct 6): Heating, ventilation, and air-conditioning (HVAC) solution provider SCA Solutions Bhd has inked an underwriting agreement with Malacca Securities Sdn Bhd for its planned ACE Market listing, targeted for the fourth quarter this year.
The initial public offering (IPO) comprises a public issue of 114 million new shares representing about 20% of its enlarged share base, proceeds of which will mainly be used to establish a new integrated facility in Kapar, Selangor.
The IPO also involves an offer for sale of 56.9 million existing shares (around 10% of its enlarged share base), which will accrue to its managing director Tan Cheng Eng and executive director Liong Chian Leek.
Post-IPO, Tan’s stake will be diluted to 43.78%, from 62.73%, while Liong’s stake will be reduced to 24.63%, from 35.28%.
All in, the listing offers investors a 30% stake in the company.
For the nine-month period ended Sept 30, 2025 (9MFY2025), SCA's net profit stood at RM7.76 million on the back of revenue of RM57.1 million.
In the financial year ended Dec 31, 2024 (FY2024), over 90% of SCA's total revenue of RM61.63 million was derived from both the HVAC and fire safety segments. Net profit stood at RM7.78 million for the year.
Of the public issue, 28.5 million new shares will be offered to Malaysian retail investors by way of balloting, while 5.7 million shares will be reserved for eligible directors and employees of the group.
Another 71.2 million new shares will be placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and 8.6 million with selected investors, both of which will be allocated by way of private placement.
The company is currently led by the duo Tan and Liong, both of whom were trained as mechanical engineers in the UK.
“We ensure safe and efficient operations of a diverse portfolio of buildings and infrastructure nationwide, including hospitals and data centres,” said Tan in a statement on Tuesday.
SCA also provides solutions for fire safety instrumentation and water treatment for HVAC applications.
Malacca Securities is the principal adviser, sponsor, underwriter, and placement agent for the proposed listing exercise.