KUALA LUMPUR (Oct 20): Shinyou Holdings Bhd, which installs lifts and escalators, is seeking a listing on the ACE Market to raise capital for expansion and working capital for new projects.

The Selangor-based company is planning to expand to East Malaysia by setting up a branch office in Kota Kinabalu, Sabah, according to its draft prospectus. Shinyou has about 20 elevators in East Malaysia currently serviced by appointed sub-contractors.

“The branch office is expected to enhance our group’s responsiveness to customers’ requirements and support our future business growth in East Malaysia,” Shinyou said.

Shinyou mainly sources its elevator, escalator and travelator systems from Lincoln Elevator (China) Co Ltd and Fuji-Sino Elevators Co Ltd, both based in China. The company also provides maintenance and repair services for the systems.

To-date, more than 800 elevators, escalators and travelators have been installed by Shinyou across the property sectors throughout Malaysia.

Datuk Matthew Tee Kai Woon, an executive director of Bina Puri Holdings Bhd (KL:BPURI), is a major backer of Shinyou with 76% stake pre-IPO. Shinyou is currently led by co-founder and managing director John Kuan.

Kuan, trained as an engineer, began his career in 2001 at MS Elevators Engineering Sdn Bhd, now known as Toshiba Elevator (Malaysia) Sdn Bhd.

There is no offer-for-sale of existing shares, meaning current shareholders of Shinyou are not cashing out their stake under the IPO.

Shinyou, however, needs more cash on hand to participate in tenders, cover the mobilisation costs, or post performance bonds, as well as purchase of the systems from its brand principals. The company also has nearly RM58 million of jobs on hand that will be progressively billed until 2028.

While the company has sufficient financing facilities to fund its existing working capital requirements, “the group intends to reduce the use of such financing facilities to reduce its interest expenses moving forward,” it added.

Berjaya Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the proposed listing.