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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.
New Straits Times
14-05-2025
- Business
- New Straits Times
Signature Alliance looks to raise RM161.2mil from IPO
KUALA LUMPUR: Signature Alliance Group Bhd aims to raise RM161.2 million from its initial public offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia. Its IPO entails the issuance of 260 million new shares priced at 62 sen a piece, representing 26 per cent of its enlarged share capital. At 62 sen, Signature Alliance's market capitalisation is projected to be RM620 million. Of the total proceeds, the company plans to use RM88 million for a new corporate office and production facility in Selangor to increase automation and enhance project delivery. A total of RM30.1 million will be used for working capital for its interior fitting-out projects, RM20 million is allocated for expansion of branch offices in Penang and Johor, RM4 million will be utilised for the purchase of additional machinery and the remaining RM7.1 million is for listing expenses. "With the ongoing growth and expansion of our business, we intend to centralise our offices and production activities for the customisation of carpentry/ joinery parts and integral fixtures as well as manufacturing of wooden furniture to improve the overall efficiency of our production process," said its executive director and group chief executive officer Darren Chang. For the financial year ended Dec 31, 2024 (FY24), the company's net profit more than tripled to RM40.6 million from RM10.4 million. This was on higher gross profit and net gain on impairment of financial and contract assets. Its revenue more than doubled to RM386 million from RM173.4 million in FY23. Signature Alliance is scheduled to be listed on June 5.
