Latest news with #RM620mil
The Star
10-07-2025
- Business
- The Star
Fibre network probe: MACC seizes RM620mil worth of assets, including golf club, luxury cars
SHAH ALAM: The Malaysian Anti-Corruption Commission (MACC) has seized several properties and other assets estimated to be worth over RM620mil following an investigation into the approval of a bank loan to a company involved in a fibre network development project valued at approximately RM400mil in 2012, Sinar Harian reports. Sources told the Malay language daily that MACC had recorded statements from nine witnesses to aid the investigation. "The seized properties include bungalows, condominiums, office premises, plots of land, and a golf club located around the Klang Valley, valued at about RM620mil. The suspect is also believed to be a shareholder in the golf club," the source told Sinar Harian. Additionally, four luxury vehicles worth approximately RM2mil were also seized. Further, the source revealed that 72 accounts, comprising personal and company accounts amounting to about RM390,000, have been frozen. MACC special operations senior director Datuk Mohamad Zamri Zainul Abidin confirmed the information when contacted, adding that a Declaration of Assets Notice under Section 36(1) of the MACC Act 2009 will be issued to the suspect and 23 other individuals starting July 10, 2025. On June 30, MACC remanded a company director, a man with the title Datuk Wira in his 50s, suspected of involvement in money laundering amounting to approximately RM75mil. The suspect is believed to have undertaken these actions in 2012 to secure a loan approval of RM400mil for a fibre network development project. Initial investigations by MACC suspect that the RM75mil was channeled into the suspect's company.
The Star
19-05-2025
- Business
- The Star
Signature Alliance eyes strong growth post-IPO
KAJANG: With expansion plans in place and a solid order book, Signature Alliance Group Bhd (SAG) is confident of its growth, moving forward. Principally involved in interior fitting-out services and building construction works, SAG executive director and group chief executive officer (CEO) Darren Chang said the group's nature of business is unlike that of typical construction players. He pointed out that the group's contract periods usually span less than one or two years, unlike others in the industry, where projects may take around three to five years to complete. 'Our turnaround time is very fast. At SAG, we can generate the numbers within a year,' he told StarBiz. Highlighting how the interior design industry 'works differently', Chang shared that the group remains unaffected by weather disruptions, as most of the work takes place indoors. He added that SAG serves a wide range of clients across various sectors. However, commercial projects dominate the portfolio, comprising 93% of completed developments – particularly within the corporate office, retail and hospitality segments. Residential projects make up the remaining 7%. 'Again, these are what make us unique compared to our competitors. Others tend to specialise in one sector, but at SAG, we operate across different sectors,' he quipped, adding that the corporate office and retail segments will continue to drive the group's earnings in the coming years. He noted that this diversification provides resilience during market fluctuations. 'A good example would be the Covid-19 pandemic. Retail and hospitality segments had it hard, but we managed to get the corporate office projects going and addition and alteration works as well,' he said. As of April 16, 2025, SAG had 69 ongoing projects with a total contract value of RM902.4mil and an unbilled contract value of RM388.6mil. Its tender book stands at RM1.1bil, with 53 tenders submitted as of the same date. With a healthy project pipeline and rising demand, Chang believes this is the right time for SAG to pursue a public listing. SAG aims to raise RM161.2mil through an initial public offering (IPO) on the ACE Market on Bursa Malaysia on June 5. The group will issue 260 million new ordinary shares at 62 sen apiece. The IPO pricing is based on a 15 times price-to-earnings ratio, benchmarked against SAG's financial year ended Dec 31, 2024 (FY24), and values the company at an estimated market capitalisation of RM620mil upon listing. In FY24, SAG recorded a net profit of RM40.56mil. This was a sharp increase from RM10.42mil in FY23, as revenue more than doubled to RM386.02mil from RM173.38mil. Chang said the results reflected the group's ability to scale quickly and deliver consistent earnings, further justifying its valuation. The bulk of the IPO proceeds will fund business expansion, with RM88mil allocated for a new corporate office and production facility in Selangor, and RM12mil set aside for expanding and establishing branch offices in Penang and Johor. An additional RM30.1mil will go toward working capital, while RM4mil is for machinery and equipment purchases. Currently, SAG operates two facilities in Bandar Baru Bangi and Kuchai, both of which are running at full capacity. The group plans to consolidate operations at a larger, centralised facility to improve efficiency and reduce operational costs. The new Klang-based corporate office and production facility will be built on a 117,000 sq ft parcel of land. Construction is expected to be completed by February 2028, with operations commencing four months later. In Penang and Johor, demand for interior fit-out services has picked up post-pandemic, said Chang. 'Previously, business was slow in Penang due to Covid-19, but with the market recovering and fresh capital from the IPO, we're confident we can secure more projects in these regions.' The remaining IPO proceeds will go toward repaying bank borrowings (RM20mil) and covering estimated listing expenses (RM7.1mil). Looking ahead, Chang expressed confidence in SAG's growth trajectory post-listing. With a current market share of just 8.1%, he said the company is far from reaching its full potential. 'We're strategically positioning ourselves to capture a larger share of the market. There's still plenty of room to grow, and we're just getting started,' he said.
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.
