KUALA LUMPUR (Nov 2): Advance Technologies Asia Bhd has mandated Malacca Securities Sdn Bhd as underwriter for the mechanical and electrical engineering firm’s upcoming ACE Market listing.
The initial public offering (IPO) will raise funds for the contractor to expand project teams and invest in more project equipment, allowing it to take on more contracts concurrently, managing director Ong Keng Yong said in a statement on Monday. No timeline was provided for the IPO.
“We see the listing as an important platform to support our next phase of growth,” he said.
Advance Technologies Asia, which caters to telecommunications, data centres, horticulture farms and building facilities, would be the latest in the line of mechanical and electrical contractors filing for an IPO on Bursa Malaysia.
Pioneer Heat Holdings Bhd (KL:PIONEER) was listed in September, while SKA Capital Bhd is set for Nov 11 listing. MyDCD Bhd, which provides the full suite of mechanical, electrical, plumbing and fire protection services to data centres, is scheduled for a debut on Nov 17.
Advance Technologies Asia has outstanding orders worth RM122 million, with more than half of the jobs involving data centres, according to the Selangor-based firm's draft prospectus posted in July.
“At the same time, we are positioning our operations and maintenance services to capture the next business cycle in data centres as completed facilities transition into long-term maintenance needs, providing a strong recurring revenue base,” Ong said.
The IPO will come with an accompanying offer for sale of existing shares by five shareholders, including managing director Ong Keng Yong and executive director Chew Tee Kai.
Substantial shareholders Mok Chan Sing, Chai Jinq Kang and Kuan Shong Wei will also offer some of their shares in the IPO that will pare their stakes to under 5% each.
Malacca Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.