Signature Alliance Aims To Raise RM161.2 Million From ACE Market Listing
Signature Alliance Group Berhad expects to raise RM161.2 million under its listing exercise on the ACE Market of Bursa Malaysia Securities Berhad.
In a statement released today, the company, which is mainly involved in interior furniture said it plans to use RM88.0 million or 54.6% of the proceeds raised from the initial public offering to establish a new corporate office and production facility in Selangor to increase automation and further strengthen its project delivery capabilities.
A further RM30.1 million (18.7%) of the proceeds will be used for working capital purposes to meet the working capital requirements for its interior fitting-out projects.
The remainder of the proceeds it added will be used to repay bank borrowings amounting to RM20.0 million (12.4%); RM12.0 million (7.4%) to expand and establish branch offices in Pulau Pinang and Johor to strengthen the company presence regionally in Peninsular Malaysia; RM4.0 million (2.5%) to acquire additional machinery and equipment for the production facility while the remaining RM7.1 million (4.4%) to defray the estimated listing expenses.
For the past 4 financial years ended ('FY') 31 December 2021 to 31 December 2024 and up to 16 April 2025, SAG has completed 624 interior fitting-out projects, with a combined value of RM391.6 million. As at 16 April 2025, the Company has 69 ongoing projects with total contract value of RM902.4 million and unbilled contract value of RM388.6 million or 43.1% of the total value.
For the financial year ended 31 December 2024 ('FY2024'), SAG's net profit jumped 290.4% to RM40.6 million from RM10.4 million a year ago ('FY2023') on higher gross profit ('GP') and net gain on impairment of financial assets and contract assets. FY2024's revenue rose 122.6% to RM386.0 million from RM173.4 million in FY2023.
During the period under review, the Company's GP expanded to RM81.7 million, translating to a GP margin of 21.2%, versus 16.9% in FY2023 due to a mix of contributions from interior fitting-out projects with higher GP margins. Net profit margin for FY2024 also improved to 10.5% from 6.0% a year ago.
Under the listing exercise, SAG is issuing 260.0 million new shares representing 26.0% of its enlarged share capital. There is no sale of existing shares.
At an IPO price of RM0.62 per share, SAG's market capitalisation is projected to be RM620 million, based on its enlarged share capital of 1.0 billion shares.
SAG's listing on the ACE Market of Bursa Securities is tentatively scheduled on 5 June 2025. M&A Securities Sdn Bhd is the Adviser, Sponsor, Managing Underwriter, Joint Underwriter and Joint Placement Agent while Affin Hwang Investment Bank Berhad is the Joint Underwriter and Joint Placement Agent for the IPO exercise. Related
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