Latest news with #SignatureAllianceGroupBhd
The Sun
5 days ago
- Business
- The Sun
Signature Alliance expects double-digit net profit growth in FY25
KUALA LUMPUR: Interior fitting-out specialist Signature Alliance Group Bhd expects double-digit net profit growth in financial year 2025 (FY25), driven by projects in the pipeline and market visibility following its debut on the ACE Market. Executive director/group CEO Darren Chang said the company is confident of securing 15% to 20% of its RM1.1 billion tender book by the end of 2025, supported by an unbilled order book of RM388 million. 'Because with the book order that we already have and with the first Q1 (results), I can say that compared to last year, this year should be a double-digit growth,' he told the media after the company's listing today. The tenders primarily comprise commercial and industrial property projects as at April 16. Chang said Signature Alliance currently holds only about 8% market share in Malaysia's interior fit-out sector which means room for expansion. 'We are not only focused in one sector like corporate offices or hotels. We are in all sectors. All sectors have the opportunity for us to work.' As at April 16, Signature Alliance had 69 ongoing projects with a total contract value of RM902.4 million, of which RM388.6 million unbilled. For the first quarter ended March 31, 2025 (Q1'25), Signature Alliance reported a net profit of RM15.8 million on the back of revenue of RM147.2 million. The 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. For FY24, Signature Alliance's net profit surged 290.4% to RM40.6 million, from RM10.4 million in FY23. This was attributed to higher gross profit 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. Chang attributed the profit leap in recent years to support from parent company Signature International Bhd, which gave Signature Alliance better financial standing and bargaining power. 'Right after we joined Signature International Bhd, they gave us strong financial backing. With that support, we had better negotiating power with our vendors – allowing us to secure discounts by offering better payment terms, prompt payments, and so on.' 'Following this IPO, we'll continue applying the same strategy, and with our improved brand visibility, we expect more vendors to approach us. This gives us more options and more competitive pricing for our projects.' Signature Alliance made a firm debut on the ACE Market of Bursa Malaysia, opening at 68 sen, 6 sen or 9.7% above its initial public offering (IPO) price of 62 sen. The stock closed at 70 sen, an 8 sen or 12.9% premium over the IPO price, with 90.9 million shares traded. Signature Alliance'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. Of the proceeds, RM88 million (54.6%) will be used to establish a new corporate headquarters and centralised production facility in Selangor, RM30.1 million (18.7%) toward working capital, RM20 million (12.4%) to repay bank borrowings, RM12 million (7.4%) to set up branch offices in Penang and Johor, RM4 million (2.5%) for new machinery, and RM7.1 million (4.4%) to cover listing expenses. 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 Signature Alliance's IPO.
New Straits Times
5 days ago
- Business
- New Straits Times
Wawasan Dengkil rallies over 16pct, nears 25 sen IPO level
KUALA LUMPUR: Wawasan Dengkil Holdings Bhd surged more than 16 per cent in early trade, closing in on its initial public offering (IPO) price of 25 sen, a level it failed to hold on debut in March. The counter opened flat at 21 sen before climbing 16.67 per cent or 3.5 sen to a morning high of 24.5 sen, amid a broader market optimism that also saw a strong debut from Signature Alliance Group Bhd. The FTSE Bursa Malaysia KLCI also opened higher, gaining 2.73 points or 0.18 per cent to 1,510.70. Most sectoral indices were in the green, except energy, financial services, healthcare and telecommunications and media. By 11.34am, the earthworks and civil engineering firm had eased to 23.5 sen, still up 11.90 per cent with 3.57 million shares changing hands. Since its ACE Market debut on March 25, the stock has touched a low of 20.5 sen, after ending its first trading day two sen, or eight per cent, lower at 23 sen. The firm has breached the IPO price of 25 sen twice over the past 72 days, reaching a high of 25.5 sen, its highest level so far. Wawasan Degkil, which specialises in road, drainage and sewerage system construction, posted a net profit of RM2.13 million for its third financial quarter ended March 31, 2025. The earnings were lifted by contributions from its construction segment and lower depreciation costs in its machinery rental unit. Revenue came in at RM40.63 million, mainly from ongoing infrastructure projects such as the LRT Line 3, Sungai Long and Setia Alaman developments. No year-on-year comparisons were available as this marks Wawasan Dengkil's first financial disclosure since listing. As at end-March, the group held RM24.39 million in cash and bank balances. Total liabilities stood at RM96.09 million, including RM52.75 million in bank borrowings. The group said it remains focused on delivering its RM369.6 million order book, comprising 13 active projects. It also plans to pursue solar infrastructure jobs under the National Energy Transition Roadmap.
New Straits Times
5 days ago
- Business
- New Straits Times
Strong ACE debut for Signature Alliance
KUALA LUMPUR: Signature Alliance Group Bhd saw a firm start on its ACE Market debut after raising RM161 million from its initial public offering (IPO). The interior fit-out firm opened at 68 sen, above its IPO price of 62 sen, and climbed to an intraday high of 69.5 sen. As of 9.15am, the stock was trading at 67 sen, an 8 per cent premium, with more than 35 million shares changing hands.
The Star
23-05-2025
- Business
- The Star
Signature Alliance's IPO shares for public oversubscribed by 1.12 times
KUALA LUMPUR: Interior fitting-out specialist Signature Alliance Group Bhd's (SAG) initial public offering (IPO) of 50 million shares for the Malaysian public has been oversubscribed by 1.12 times. SAG said it received a total of 1,233 applications seeking 56.07 million new shares valued at RM34.76 million. "The bumiputera public portion was subscribed 1.12 times, with a total of 327 applications received for 28 million new shares. "For the non-bumiputera public portion, a total of 906 applications for 28.1 million new shares were received, representing a subscription rate of 1.12 times,' it said in a statement. Meanwhile, it said 30 million new shares made available for eligible directors, employees, and persons who have contributed to its success, and 20 million new shares for entitled shareholders of Signature International Bhd under the restricted offering have also been fully subscribed. "In addition, 160 million shares made available for application by way of private placement to bumiputera investors approved by the Ministry of Investment, Trade and Industry and selected investors have been fully placed out,' it said. SAG executive director and group chief executive officer Darren Chang said the IPO proceeds will enable the group to further accelerate its plan to establish a new corporate office and production facility in Selangor while increasing automation and strengthening its project delivery capabilities. Upon listing on the ACE Market of Bursa Malaysia on June 5, SAG would have a total market capitalisation of RM620.0 million based on an issue price of 62 sen per share and an enlarged share capital of 1.0 billion shares. - Bernama
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.
