KUALA LUMPUR (Oct 20): Data centre-related projects account for nearly half of ACE Market-bound SKA Capital Bhd's RM313.4 million outstanding order book, as the group eyes more contracts from the fast-growing sector.
Managing director Datuk Subas Kumar Ambairam said the group is also bidding for about RM500 million worth of data centre-related projects through selective tenders.
Speaking at a press conference following the company's prospectus launch on Tuesday, he said the group has a success rate of about 25% for open tenders and between 40% and 45% for selective tenders.
Subas Kumar said continued investments in electricity infrastructure and data centre development would support demand for the group's engineering services.
"Every data centre needs a substation on a very fast-track basis," he said.
He added that even if data centre development slows, SKA Capital would continue to benefit from Tenaga Nasional Bhd's (KL:TENAGA) increased capital expenditure on electricity infrastructure.
The group expects underground utilities engineering to contribute about 30% of its revenue following the IPO, with the remaining 70% coming from substation engineering, procurement, construction and commissioning (EPCC) services.
SKA Capital is also seeking direct contracts from TNB through its 70%-owned subsidiary Reltency Engineering Services Sdn Bhd, while continuing to undertake civil and structural engineering works as a subcontractor.
"If the other EPCC contractors get the job, we still have a chance of getting the civil and structural works. If Reltency gets the job, we get 100% of the EPCC contract," Subas Kumar said.
He said the machinery purchases planned under the IPO would help the group execute projects more efficiently and improve margins, particularly for data centre projects that require accelerated completion.
SKA Capital's ACE Market debut is slated for Nov 11, raising over RM100 million at 43 sen per share.