PETALING JAYA: ACE Market-bound Critical Holdings Bhd
(CHB) is seeking to raise RM26 million from its Dec 18, 2023 debut, with its initial public offering (IPO) priced at 35 sen per share.
Chief executive officer Tan Si Lim said the funds generated would be used to acquire a new regional office in central Peninsular Malaysia to strategically facilitate future expansion into central and southern regions and expand its sales and technical teams, among others.
"Furthermore, investment in capital expenditure and reinforcing working capital will fortify our foundation for sustained success," he said at the launch of the IPO prospectus.
Tan said RM9.9 million (38.1 per cent) of the IPO proceeds will be channelled towards the working capital and RM6 million (23 per cent) for a new regional office, RM4.5 million (17.3 per cent) to expand the sales and technical teams.
"The remaining RM4 million (15.4 per cent) is for listing estimated expenses and RM1.6 million (6.2 per cent) for the capital expenditure," he said.
According to the prospectus, the company will have a market capitalisation of RM130.1 million based on the issue price of 35 sen per share and the enlarged issued share capital of 371.74 million shares.
"Another 46.5 million shares for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), while 18.6 million new shares will be available for application by the Malaysian public, 3.7 million shares eligible for directors and employees and 5.6 million by way of private placement to selected investors.
Tan added that the group aims to declare a yearly dividend of up to 25 per cent of its profit after tax to reward its shareholders.
CHB provides mechanical, electrical and process utilities (MEP) engineering solutions and MEP maintenance and services for critical facilities, namely, plant rooms, cleanrooms and data centres.
Applications for the IPO will be available starting today and will be closing at 5 pm on Dec 5, 2023. - Bernama
