ACE Market-bound Signature Alliance aims to raise RM161.2mil from IPO
From left: Affin Hwang IB head of equity capital markets Arvin Chia, Signature Alliance Group shareholder Melvin Ng, executive director Mario Foo, group CEO Darren Chang, shareholder Datuk Seri Chiau Beng Teik, shareholder Chiau Haw Choon, M&A Securities managing director Datuk Bill Tan, head of corporate finance Gary Ting, Chin Hin Group group chief financial officer Michael Lim and Signature Alliance Group director Lau Kock Sang.
KUALA LUMPUR: Interior fitting-out specialist Signature Alliance Group Bhd (SAG) aims to raise RM161.2 million through its initial public offering (IPO), ahead of its scheduled listing on the ACE Market of Bursa Malaysia Securities Bhd on June 5, 2025.
The IPO involves the issuance of 260 million new shares at an issue price of 62 sen per share.
Of the total proceeds, SAG said RM88 million (54.6 per cent) will be used to establish a new corporate office and production facility in Selangor to increase automation and enhance project delivery, while RM30.1 million (18.7 per cent) will be allocated for working capital to support its interior fitting-out projects.
The remainder of the funds will go towards repaying bank borrowings (RM20 million), establishing branch offices in Penang and Johor (RM12 million), acquiring machinery and equipment (RM4 million), and covering listing expenses (RM7.1 million).
Executive director and group chief executive officer Darren Chang said the expansion is necessary, as the company's existing factories in Bandar Baru Bangi and Puchong are no longer sufficient to support its growing operations.
"One of our key goals is to centralise our office operations, as we currently do not have enough space.
"The funds raised will allow us to bring everyone together under one roof, expand our production facilities, and invest in new machinery to increase our production capacity,' he said at a press conference held in conjunction with the company's prospectus launch.
Chang added that despite the underperformance of several recent ACE Market debutants due to challenging market conditions, the company is confident in its ability to deliver strong results.
In a separate statement, the company said that for the financial years ended Dec 31, 2021, to Dec 31, 2024, and up to April 16, 2025, SAG had completed 624 interior fitting-out projects, with a total value of RM391.6 million.
"As of April 16 this year, the company has 69 ongoing projects with a total contract value of RM902.4 million and unbilled contract value of RM388.6 million or 43.1 per cent of the total," it said.
The IPO is open for subscription from today to May 21, 2025.
M&A Securities Sdn Bhd is the adviser, sponsor, managing underwriter, joint underwriter and joint placement agent, while Affin Hwang Investment Bank Bhd is the joint underwriter and joint placement agent for the IPO. - Bernama
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