Latest news with #RM161.2mil
The Star
3 days ago
- Business
- The Star
Signature Alliance's ACE Market debut nets RM161mil
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: Signature Alliance Group Bhd (SAG) expects to deliver double-digit growth in net profit for the financial year ending Dec 31, 2025 (FY25), underpinned by its robust unbilled order book and tender book. As at April 16, 2025, the interior fit-out solutions provider had a total unbilled order book of RM388.6mil, which will be realised progressively over the next one to two financial years. The group has 69 ongoing projects with a total contract value of RM902.4mil. SAG also has a tender book of RM1.1bil, comprising primarily commercial and industrial property projects. Its executive director and group CEO Darren Chang said the company is confident of securing between 15% and 20% of these tenders by end-2025. 'Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he told the media following the listing ceremony. For FY24, the group's net profit rose nearly four-fold year-on-year (y-o-y) to RM40.6mil, on the back of a higher gross profit and a net gain on the impairment of financial and contract assets. Revenue more than doubled y-o-y to RM386.02mil in FY24. SAG provides interior fit-out services for different types of premises in the commercial, industrial and residential sectors. In FY24, the commercial segment accounted for the bulk of the group's revenue at 75.2%, followed by the industrial segment at 18.4%, and residential at 6.4%. In terms of pursuing new customers, Chang noted that the group will focus more on the commercial and industrial segments. The company has many repeat customers in the residential segment and will continue to support them when they return with other projects. 'However, residential projects are not our main focus. Our focus remains on commercial projects such as hotels, corporate offices, shopping malls and retail brand spaces,' he said. SAG made its debut on the ACE Market of Bursa Malaysia yesterday, opening at 68 sen per share – six sen higher than its initial public offering (IPO) price of 62 sen. The opening volume was 8.9 million shares. The stock closed its maiden trading day at 70 sen. It hit a high of 72 sen and a low of 67 sen during intraday trade. SAG raised RM161.2mil from the public issue of 260 million new shares. The bulk of the proceeds raised – RM88mil – is earmarked for setting up a new corporate office and a 50,000 sq ft production facility in Selangor. Another RM4mil will be used to purchase machinery and equipment, while RM12mil will go towards expanding its existing Penang office and establishing a new branch office in Johor. Meanwhile, RM30.1mil is allocated for working capital. A further RM20mil is set aside for the repayment of bank borrowings, and the remaining RM7.1mil will be used to defray estimated listing expenses. According to Chang, there is a lot of ongoing development in Penang, where the company already has an office and plans to expand it to serve more customers. Previously, the company was not fully equipped financially to pursue new clients, but with the proceeds from its listing, it is now well-positioned to seek new customers in Penang. 'There is also a lot of ongoing development in Johor as well. For instance, the Johor Baru-Singapore Rapid Transit System Link project is nearing completion.' Chang explained that now is the right time for the company to return to Johor and expand its business there. Currently, the group operates two production facilities in Bandar Baru Bangi and Puchong, Selangor. SAG intends to centralise its production activities and improve overall efficiency by relocating both facilities to the new planned production facility in Klang.
The Star
14-05-2025
- Business
- The Star
Signature Alliance targets RM161mil 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. PETALING JAYA: Interior fit-out solutions provider Signature Alliance Group Bhd (SAG) aims to raise RM161.2mil in proceeds via an initial public offering (IPO) on the ACE Market of Bursa Malaysia on June 5, 2025. The IPO entails the issuance of 260 million new ordinary shares at an issue price of 62 sen each, valuing the company at an estimated market capitalisation of RM620mil upon listing. Executive director and group chief executive officer (CEO) Darren Chang said over half of the proceeds would be allocated to developing a new corporate headquarters and production facility in Selangor. He said this move was necessary considering the existing offices and facilities have been fully utilised. '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 purchase new machinery to increase our production,' he said at a press conference after the launch of SAG's prospectus here yesterday. The company has earmarked RM88mil, or 54.6% of the total proceeds, for the new corporate and production facility. An additional RM12mil would be used to establish and expand brand offices in Penang and Johor. According to Chang, the regional expansion was for capturing business opportunities for interior fitting-out services in the two states as well as strengthening the company's market presence in the northern and southern regions of Peninsular Malaysia. 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. Addressing concerns about the subdued performance of recent ACE Market listings, Chang expressed confidence in SAG's fundamentals and business outlook. 'For the past four financial years ended Dec 31, 2021 (FY21) to FY24 and up to April 16, 2025, SAG has completed 624 interior fitting-out projects with a combined value of RM391.6mil. 'As at April 16, 2025, the company had 69 ongoing projects with a total contract value of RM902.4mil and an unbilled contract value of RM388.6mil or 43.1% of the total value,' he said. In FY24, SAG posted a net profit of RM40.56mil, an increase from RM10.42mil recorded in FY23. Revenue also more than doubled in FY24, rising to RM386.02mil from RM173.38mil in the previous year. On external market pressures, particularly tariffs imposed by the United States, Chang noted minimal impact on operations. He attributed this to SAG's reliance on locally sourced raw materials instead of imported. 'And unlike other construction companies, we use different types of materials for our interior fitting-out services,' he added. SAG specialises in interior fitting-out services and building construction, with Signature International Bhd holding a 50.7% stake and indirectly controlled by construction outfit Chin Hin Group Bhd . Following the IPO, Signature International's stake would be diluted to 37.5%, while the combined shareholdings of Chang, northern region CEO Foo Khai Shin, and central region CEO Ng Mun Moh would be reduced to 36.5% from 49.3%. Applications for the shares are open and will close on May 21, 2025 at 5pm.
The Star
05-05-2025
- Business
- The Star
Bursa Malaysia nets RM853.8mil of offshore investment as foreign interest returns
KUALA LUMPUR: The return of foreign funds to Bursa Malaysia continued with net inflows of RM853.8mil registered in the week ended May 2, 2025. According to MIDF Research's weekly fund flow report, this marked the first consecutive weeks of net foreign inflow since September 2024. The sectors that saw the most net foreign inflows were financial services (RM567.4mil), healthcare (RM124.8mil) and industrial products and services (RM107.9mil). Only the energy (RM31.9mil) and plantations (RM6mil) sectors recorded net foreign outflows during the week. Local institutions, which had shored up the local market as foreign investors made their exit, continued to sell with a net outflow of RM692.6mil. The local retailers were net sellers of RM161.2mil net of equities, which represented a 2.5 times increase in net outflow from the prior week. The average daily trading volume (ADTV) was broadly higher with local institutions and local retailers seeing a 8.7% and 5.7% respective jump in participation, while foreign investors saw an increase of 26%. Trading ideas: CIMB, SunREIT, PLB, Capital A, GenM, MN, TCS, Exsim, OB, Sentoria, Farm price, Jentayu, Ramssol
