KUALA LUMPUR: Electrical engineering services firm ES Sunlogy Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for the company's upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
ES Sunlogy is a provider of mechanical and electrical (M&E) engineering services, specialising in electrical engineering for electricity supply distribution systems, mechanical engineering for building services, and the generation and sale of renewable energy.
The listing exercise involves a public issuance of 140 million new shares, representing 20 per cent of its enlarged share capital of 700 million shares, along with an offer for sale of 70 million shares, representing 10 per cent of the enlarged share capital.
The IPO will allocate 35 million shares, or five per cent of the company's enlarged share capital, to the Malaysian public.
A total of 2.5 per cent of these shares are for public investors, while the other 2.5 per cent are reserved for Bumiputera public investors.
An additional 17.5 million shares, representing 2.5 per cent of the enlarged share capital, will be allocated to eligible directors, employees, and individuals who have contributed to the success of ES Sunlogy and its subsidiaries.
A further 87.5 million shares, representing 12.5 per cent of the enlarged share capital, will be reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) through a private placement.
Under the underwriting agreement, M&A will underwrite 52.5 million issue shares to be made available for application by the Malaysian public via public balloting and pink form allocations.
The remaining 87.5 million issue shares and 70 million offer shares will be placed out by M&A and will not be underwritten by M&A.
ES Sunlogy managing director Khor Chuan Meng said the company is well-positioned to capitalise on the growing demand for sustainable M&E engineering solutions, supported by its solid track record in delivering high-quality M&E engineering services and a growing portfolio of renewable energy projects undertaken.
"Based on independent market research, sectors such as commercial, residential, industrial, solar, and data centres are demonstrating a rising need for energy-efficient and sustainable solutions, positioning us to effectively meet these customer demands.
"The proceeds to be raised from this IPO will enable us to further strengthen our technical capabilities and expand our existing project portfolios, while also allowing us to grow our footprint in the generation and sales of renewable energy," he added.