From left: ES Sunlogy Bhd non-independent non-executive director Datuk Keh Chuan Seng, ES Sunlogy Bhd managing director Khor Chuan Meng, ES Sunlogy executive director Chu Kerd Yee, M & A Securities Sdn Bhd managing director Datuk Bill Tan and M & A Securities Sdn Bhd head of corporate finance Gary Ting.
KUALA LUMPUR: ES Sunlogy Bhd has entered into an underwriting agreement with M & A Securities Sdn Bhd for the company’s upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
ES Sunlogy is a provider of mechanical and electrical (M&E) engineering services, specialising in electrical engineering for electricity supply distribution systems, mechanical engineering for building services, and the generation and sale of renewable energy.
According to the prospectus exposure available on the Bursa Securities website, ES Sunlogy’s listing exercise includes a public issuance of 140.0 million new shares, accounting for 20.0% of its enlarged share capital of 700.0 million shares, alongside an offer for sale of 70.0 million shares, representing 10.0% of the enlarged share capital.
The IPO will allocate 35.0 million shares, or 5.0% of the company’s enlarged share capital, to the Malaysian public. Half of these shares, or 2.5%, are for public investors, while the other 2.5% are reserved for Bumiputera public investors.
An additional 17.5 million shares, representing 2.5% of the enlarged share capital, will be allocated to eligible directors, employees, and individuals who have contributed to the success of ES Sunlogy and its subsidiaries.
A further 87.5 million shares, representing 12.5% of the enlarged share capital, will be reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) through a private placement.
Under the underwriting agreement, M&A will underwrite 52.5 million issue shares to be made available for application by the Malaysian public via public balloting and pink form allocations.
The balance of 87.5 million issue shares and 70.0 million offer shares will be placed out by M&A and will not be underwritten by M&A.
ES Sunlogy managing director, Khor Chuan Meng, stated that the signing of the underwriting agreement with M&A marks a significant corporate milestone for ES Sunlogy as the company embarks on its IPO journey.
“With a solid track record in delivering high-quality M&E engineering services and a growing portfolio of renewable energy projects undertaken, we are well-positioned to capitalise on the growing demand for sustainable M&E engineering solutions.
“Based on independent market research, sectors such as commercial, residential, industrial, solar, and data centers are demonstrating a rising need for energy-efficient and sustainable solutions, positioning us to effectively meet these customer demands.
“The proceeds to be raised from this IPO will enable us to further strengthen our technical capabilities and expand our existing project portfolios, while also allowing us to grow our footprint in the generation and sales of renewable energy,” Khor said.
