KUALA LUMPUR: Power infrastructure engineering solutions provider SKA Capital Bhd has set its initial public offering (IPO) price at 43 sen a share ahead of its listing on Bursa Malaysia's ACE Market on Nov 11.
The IPO comprises a public issue of 168.08 million new shares to raise RM72.3 million for the company.
This is alongside an offer for sale of 72.4 million existing shares through a private placement to selected investors.
Of the new shares, 44.78 million will be made available to the Malaysian public, while 8.96 million will be allocated to eligible directors, employees and individuals who have contributed to the company.
Another 111.94 million shares will be placed with Bumiputera investors approved by the Investment, Trade and Industry Ministry, while 2.41 million shares will be placed with selected investors.
The 72.4 million existing shares under the offer for sale will also be placed with selected investors.
Based on its enlarged share capital of 895.5 million shares, SKA Capital is expected to have a market capitalisation of RM385.1 million upon listing.
The company said proceeds will be used mainly to buy machinery and equipment, support performance bond requirements for future projects and fund working capital.
"This will enhance the group's ability to undertake multiple projects concurrently and compete for larger, higher-value power infrastructure contracts. The balance will be used to defray listing expenses," it said.
SKA Capital managing director Datuk Subas Kumar A/L Ambairam said the listing will strengthen its financial position and execution capacity.
This will allowing the company to undertake multiple projects concurrently and pursue larger, more complex power infrastructure contracts.
"We intend to build on our project track record, industry credentials and established customer relationships to replenish our order book and deepen our participation in power infrastructure projects across Peninsular Malaysia.
SKA Capital provides substation engineering services, including engineering, procurement, construction and commissioning, civil and structural engineering, electrical and mechanical engineering, underground utilities engineering, and the trading of electrical equipment and construction materials.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.
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