SOLAR District Cooling Group Bhd (SDCG) has officially launched its prospectus for an upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities).
This IPO marks a pivotal moment in the company’s expansion plans, providing an opportunity for SDCG to strengthen its market position in building management systems (BMS) and solar thermal systems as well as energy-saving services.
The group, including its subsidiaries, specialises in the provision and maintenance of BMS, solar thermal systems and energy-saving solutions.
SDCG has established a solid reputation for enhancing energy efficiency in various sectors including healthcare, hospitality and industry.
Notably, the company has been instrumental in improving energy performance for concession companies that support public hospitals, through initiatives such as installing hybrid solar thermal hot water systems and retrofitting LED lighting.
The IPO aims to raise RM45.09 mil through the issuance of 118.67 million shares at an issue price of RM0.38 per share. The funds raised will be allocated as follows:
- RM1.90 mil for expanding the headquarters in Kajang, Selangor
- RM5.00 mil for tender and performance bonds for future projects
- RM18.70 mil for purchasing materials related to BMS and solar thermal systems
- RM12.67 mil for general working capital
- RM2.52 mil for capital expenditures, including new equipment for BMS, installation and maintenance of solar thermal hot water systems, and ICT software and services
- RM4.30 mil for estimated listing expenses
Applications for the IPO will open today at 10.00am and close on Sept 6, 2024. SDCG is set to be listed on the ACE Market on Sept 19, 2024, with a projected market capitalisation of RM161.05 mil at the IPO price.
“This IPO represents a significant milestone in SDCG’s journey.
“Since 2008, we have been driven by a commitment to innovation, efficiency, and sustainability. Our focus on delivering Building Management Systems and solar thermal technologies has helped us enhance energy efficiency and promote environmental stewardship,” SDCG managing director Edison Kong.
“With this listing, we look forward to embracing new opportunities and setting new standards in our business. I am deeply grateful to our team, clients, and partners for their continued trust and support.”
Mercury Securities Sdn Bhd capital markets head Chris Lai Ther Wei congratulated SDCG, saying, “We would like to congratulate the Board and the entire team of SDGC on the successful launch of your IPO prospectus. Well done for reaching another milestone in your corporate journey.”
Furthermore, Mercury Securities is serving as the principal adviser, sponsor, sole underwriter and sole placement agent for SDCG. – Aug 28, 2024
