UNDERGROUND utilities and substation engineering specialist MN Holdings Bhd debuted on the ACE Market of Bursa Malaysia today at 26 sen or a premium of 5 sen (24%) over its initial public offering (IPO) price of 21 sen with 20.83 million shares traded.
However, the share price subsequently consolidated between the range of 22 sen and 27.5 sen to end the mid-day trading session at 23.5 sen with 187.86 million shares traded which makes the counter the most actively traded stock with a market capitalisation of RM96 mil.
Moving forward, the company revealed that it is in the midst of tendering for several large-scale solar (LSS) substation projects (as project management coordinator) as well as engineering design works.
Its managing director Loy Siong Hay said MN Holdings is well-positioned to secure winning bids as it has proven capabilities in undertaking LSS projects. To date, the company has secured three engineering, procurement, construction and commissioning (EPCC) projects under LSS2 in the capacity as sub-contractor.
“As underground utilities and substation engineering specialist, we are capable to assume the management and supervisory role of the entire project, source for necessary construction materials, substation equipment and systems for installation and commissioning,” Loy pointed out.
MN Holdings has 15 years of operating history in the power utilities construction industry in Malaysia. The company primarily serves the power utilities sector in Malaysia from power generation to transmission and distribution.
As part of its growth strategy, the company is able to take on the increased role of main contractor who is appointed by LSS project owners.
“This strategy will enable us to build our reputation and track record to position ourselves to secure more contracts in the future and strengthen our substation engineering services and solutions business segment,” added Loy.
Under its listing exercise, MN Holdings has raised RM17.2 mil from its public issue of 81.8 million new shares at an issue price of 21 sen/share. The listing also include an offer for sale of 40.9 million existing shares to selected investors by way of private placement.
Of the total IPO proceeds, RM5.84 mil (34%) will be used to purchase various machineries and equipment over the next two years to support its business expansion for the underground utilities and substation engineering services and solutions segments.
MN Holdings will further utilise RM4.33 mil (25.2%) of the proceeds for general working capital to support working capital requirements for new and existing projects. The remainder of the proceeds will be used for repayment of bank borrowings amounting to RM4 mil (23.3%) and RM3 mil (17.5%) for estimated listing expenses.
Based on the enlarged share capital of 408.75 million shares, MN Holdings is expected to have a market capitalisation of RM85.84 mil.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for MN Holdings’ IPO exercise. – April 28, 2022
