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BusinessToday
3 days ago
- Business
- BusinessToday
Signature Alliance Debuts 8% Higher
From left: Saw Gee Kai, Group Chief Financial Officer of SAG; Dato' Boey Chin Gan, Independent Director of SAG; Tan Poh Cheok, Independent Director of SAG; Lim Sook Yee, Independent Director of SAG; Melvin Ng, Promoter and CEO for Central Region, SAG; Mario Foo, Executive Director/CEO – Northern Region of SAG; Darren Chang, Executive Director/Group CEO of SAG; Chiau Haw Choon, Promoter of SAG; Datuk Wan Ahmad Satria Wan Hussein, Chairman of SAG; Datuk Bill Tan, Managing Director of M & A Equity Holdings Berhad; Datuk Seri Chiau Beng Teik, Promoter of SAG; Michael Lim, Group Chief Financial Officer of Chin Hin Group Berhad; Lau Kock Sang, Director of SAG; and Gary Ting, Head of Corporate Finance at M & A Securities Sdn Bhd. Signature Alliance Group Bhd (SAG) made a firm debut on the ACE Market of Bursa Malaysia this morning, opening at 68 sen and recording an 8.87% gain to 67.5 sen as of 9.03am. The construction and interior fit-out firm saw 256.9 million shares changing hands, making it one of the most actively traded counters at the opening bell. It hit a high of 69.5 sen and a low of 67 sen in early trade, with buy and sell volumes remaining strong. SAG's listing comes on the back of a fully subscribed IPO, with its public portion oversubscribed by 1.12 times. The offering raised RM161.2 million through the issuance of 260 million new shares at 62 sen apiece, giving the company a market capitalisation of RM620 million at listing. Darren Chang, Executive Director/Group Chief Executive Officer of SAG, said the company is confident of securing between 15% and 20% of its RM1.1 billion tender book by the end of 2025. 'The tenders primarily comprise commercial and industrial property projects valued at RM1.1 billion as at April 16, 2025. Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he added. Speaking to reporters after SAG's Listing Ceremony, Mr Chang noted that the Company's earnings visibility for the financial year ended 31 December 2025 ('FY25') and FY26 will be supported by an unbilled order book of RM388.6 million as at 16 April 2025, in addition to anticipated contract wins. As at April 16, 2025, SAG has 69 ongoing projects with a total contract value of RM902.4 million. 'Our current ongoing projects of RM902.4 million, of which RM388.6 million unbilled, clearly reflects market demand for our interior fitting-out services and provides earnings visibility for the next one to two financial years,' Mr Chang further added. For the first quarter ended 31 March 2025 ('1QFY25'), SAG reported a net profit of RM15.8 million on the back of revenue of RM147.2 million. The strong performance was driven by interior-fitting out works for two major projects – a commercial office property in Bandar Baru Sri Petaling and a commercial hotel property in Tun Razak Exchange, accounting for 38.9% and 11.9% of the revenue respectively. The company posted a gross profit ('GP') of RM29.1 million during the quarter, with GP margin of 19.8%. No comparative figures were available as it was the first interim financial report released by the Company in relation to its financial results, in compliance with the listing requirements. For FY24, SAG's net profit surged 290.4% to RM40.6 million, from RM10.4 million in FY23. This was attributed to higher GP and net gain on impairment of financial assets and contract assets. Revenue for FY24 rose 122.6% to RM386.0 million, from RM173.4 million in FY23. Under the listing exercise, SAG raised RM161.2 million from its Public Issue of 260 million new shares at RM0.62 per share. No existing shares were offered for sale. Of the total proceeds, RM88.0 million (54.6%) will be used to establish a new corporate office as its new headquarters and a production facility to centralise its production activities in Selangor. 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 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's presence regionally in Peninsular Malaysia; RM4.0 million (2.5%) to acquire additional machinery and equipment for the new production facility in Selangor to increase automation and further strengthening its project delivery capabilities while the remaining RM7.1 million (4.4%) to defray the estimated listing expenses. Following its listing, SAG is expected to have a market capitalisation of RM620 million, based on an enlarged share capital of 1.0 billion shares. Related
Barnama
14-05-2025
- Business
- Barnama
ACE Market-bound Signature Alliance Aims To Raise RM161.2 Mln From IPO
BUSINESS KUALA LUMPUR, May 14 (Bernama) -- 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.
BusinessToday
14-05-2025
- Business
- BusinessToday
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
The Sun
14-05-2025
- Business
- The Sun
Signature Alliance to raise RM161m from ACE Market IPO
KUALA LUMPUR: Interior fitting-out specialist Signature Alliance Group Bhd expects to raise RM161.2 million from the ACE Market listing of Bursa Malaysia. The company plans to use RM88 million (54.6%) of the proceeds raised from the initial public offering (IPO) 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 requirements for its interior fitting-out projects. The remainder of the proceeds will be used to repay bank borrowings amounting to RM20 million (12.4%), RM12 million (7.4%) to expand and establish branch offices in Pulau Pinang and Johor to strengthen the company's presence regionally in Peninsular Malaysia, RM4 million (2.5%) to acquire additional machinery and equipment for the production facility, and the remaining RM7.1 million (4.4%) to defray the estimated listing expenses. Executive director and group CEO Darren Chang said with the ongoing growth and expansion of its business, the company intends to centralise offices and production activities for the customisation of carpentry/joinery parts and integral fixtures, and the manufacturing of wooden furniture to improve the overall efficiency of its production process. 'Presently, we are unable to customise and manufacture sufficient carpentry and joinery parts, integral fixtures, and wooden furniture for all of our existing projects using our own production facilities. 'This is primarily due to the growing number of interior fitting-out projects we continue to secure and deliver, each requiring varying degrees of customisation. 'Additionally, the differing profiles and specifications of the carpentry, joinery parts, fixtures, and wooden furniture needed for each project further strain our production capacity. 'These challenges are compounded by the space constraints in our existing facilities, which limit our ability to scale up manufacturing to meet demand effectively,' Chang said. He said the company intends to construct its production facility, and upon commencing operations of this new facility, it intends to produce all carpentry/joinery parts, integral fixtures, and wooden furniture required internally for all projects undertaken in Peninsular Malaysia. 'Similarly, the new corporate office will enable us to centralise our staff force in Klang Valley under one location and provide space for future hires in line with our expected business growth,' Chang said. For the past four financial years (FY) ending Dec 31, 2021, to Dec 31, 2024, and up to April 16, 2025, Signature Alliance has completed 624 interior fitting-out projects with a combined value of RM391.6 million. As of April 16, 2025, the company has 69 ongoing projects with a total contract value of RM902.4 million and an unbilled contract value of RM388.6 million, or 43.1% of the total value. For the financial year ended Dec 31, 2024 (FY24), Signature Alliance net profit jumped 290.4% to RM40.6 million from RM10.4 million a year ago (FY23) on higher gross profit and net gain on impairment of financial assets and contract assets. FY24's revenue rose 122.6% to RM386 million from RM173.4 million in FY23. During the period, the company's gross profit expanded to RM81.7 million, translating to a margin of 21.2%, versus 16.9% in FY23, due to a mix of contributions from interior fitting-out projects with higher gross profit margins. Net profit margin for FY24 also improved to 10.5% from 6% a year ago. Under the listing exercise, Signature Alliance is issuing 260 million new shares representing 26% of its enlarged share capital. There is no sale of existing shares. Out of the 260 million new shares, 50 million new shares will be made available to the Malaysian public via balloting; 30 million new shares for its eligible directors, employees of Signature Alliance and persons who have contributed to the success of the company under the Pink Form Allocations while 20 million new shares are reserved for application by the entitled shareholders of Signature International Bhd under the restricted offering. The remaining 160 million new shares will be placed out to Bumiputera investors approved by the Ministry of Investment, Trade and Industry and selected investors. At an IPO price of RM0.62 per share, Signature Alliance's market capitalisation is projected to be RM620 million, based on its enlarged share capital of 1 billion shares. The IPO is open for subscription until May 21, 2025. Signature Alliance's listing on the ACE Market of Bursa Securities is tentatively scheduled for June 5, 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 exercise.
The Star
14-05-2025
- Business
- The Star
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
