Signature Alliance shares rise 13.71% on ACE Market debut
From left: SAG group chief financial officer Saw Gee Kai, independent director Datuk Boey Chin Gan, independent director Tan Poh Cheok, independent director Lim Sook Yee, promoter and CEO for central region Melvin Ng, executive director and CEO of northern region Mario Foo, executive director and group CEO Darren Chang, promoter Chiau Haw Choon, chairman Datuk Wan Ahmad Satria Wan Hussein, M&A Equity Holdings Bhd Datuk Bill Tan, promoter Datuk Seri Chiau Beng Teik, Chin Hin Group chief financial officer Michael Lim, SAG director Lau Kock Sang and M&A Securities Sdn Bhd head of corporate finance Gary Ting
KUALA LUMPUR: Investors gave Signature Alliance Group Bhd (SAG) a warm welcome on its debut on the ACE Market of Bursa Malaysia, ramping up the newly-listed share to a 13.71% premium over its initial public offering (IPO) price.
At the time of writing, the interior fit-out solutions provider, which raised RM161.2mil via an IPO fundraising, was trading at an intra-morning high of 70.5 sen a share, an 8.5 sen increase over its public issue price of 62 sen a share.
It was the most active stock on the domestic market, with 63.9 million shares changing hands.
Executive director and group CEO Darren Chang said post-listing ceremony the company is confident of securing between 15% and 20% of its RM1bil tender book by end-2025.
He said the tenders primarily comprise commercial and industrial property projects valued at RM1.1bil as at April 15, 2025.
"Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he added.
Chang said the company's earnings visibility for the financial year ended Dec 31, 2025 (FY25) and FY26 will be supported by an unbilled order book of RM388.6mil as at April 16, 2025, in addition to anticipated contract wins.
As at 16 April 2025, SAG has 69 ongoing projects with a total contract value of RM902.4mil.
'Our current ongoing projects of RM902.4mil, of which RM388.6mil are unbilled, clearly reflects market demand for our interior fitting-out services and provides earnings visibility for the next one to two financial years,' Chang added.
SAG is on an expansion drive, allocating more than half of its IPO proceed to the development of a new corporate headquarters and production facility in Selangor.
A sum of RM88mil or 54.6% of the total proceeds will go towards the new corporate and production facility, while an additional RM12mil will be used for establishing and expanding brand offices in Penang and Johor.
SAG would also allocate RM30.1mil for working capital requirements and RM4mil for the acquisition of new machinery and equipment.
The remaining proceeds would be used for the repayment of bank borrowings at RM20mil and to cover listing-related expenses at RM7.1mil.
Pre-IPO, SAG was 50.7%-owned by Signature International Bhd , which is indirectly controlled by construction outfit Chin Hin Group Bhd . Following the IPO, Signature International's stake was diluted to 37.5%
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