UNDERGROUND utilities and substation engineering specialist MN Holdings Bhd (MNHB) has signed an Underwriting Agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) exercise to list on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities).
The IPO entails a public issue of 81.8 million new shares in MNHB, representing 20% of the enlarged share capital and an offer for sale of 40.9 million existing shares to selected investors by way of private placement.
Of the 81.8 million new shares, 20.4 million new shares will be allocated to the Malaysian public via balloting, 8.2 million new shares will be allocated for its eligible directors and employees under Pink Form Allocations, 51.1 million new shares are reserved for private placement to Bumiputera investors approved by the International Trade and Industry Ministry while the remaining two million new shares will be placed out to selected investors.
Furthermore, under the Underwriting Agreement, M&A Securities will underwrite a total of 28.6 million additional shares made available to the Malaysian public as well as Pink Form Allocations.
MNHB mainly serves customers in the power, gas, sewerage and telecommunications industries in Malaysia.
MNHB primarily provides infrastructure utilities services, which include underground utilities engineering services and solutions as well as substation engineering services and solutions.
Its clientele are primarily utility project main contractors, property developers, and companies that require its services to provide power supply to specified sites and/or premises.
According to MNHB managing director Loy Siong Hay, the signing of the agreement will take MNHB a step closer towards listing on Bursa Securities.
“The listing will enable us to tap into the equity capital market to raise funds to support our business expansion for the underground utilities and substation engineering services and solution segments,” he said.
Loy noted that MNHB’s operational resources for carrying out underground utilities engineering and substation engineering works for its clients are heavily reliant on the availability of its machinery and equipment.
“Proceeds from the IPO would generally be used to purchase various machineries and equipment to cater for underground utilities and substation engineering projects of different scale and complexities,” he added.
In addition, Loy believed that the acquisition of these machineries and equipment will allow them to scale up their resources and project capabilities in undertaking more projects.
Not to mention, a part of the earnings will also be allocated to repay bank loans, general working capital and to cover projected listing charges.
MNHB is scheduled to be listed on the ACE Market of Bursa Securities by April 2022 while M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise. – Jan 27, 2022
