Serba Dinamik listing to be biggest in 19 months

Prospectus launch: (from left) Affin Hwang Investment Bank Bhd group MD Datuk Maimoonah Hussain, Serba Dinamik non-independent non-executive director Abdul Kadier, Abdul Karim, chairman and independent non-executive director Datuk Mohamed Nor Abu Bakar and RHB Investment Bank CEO Robert Huray at the prospectus launch.

IPO is timely as it comes at a time following a dearth in 2016

PETALING JAYA: Serba Dinamik Holdings Bhd’s plan of raising close to RM600mil from its initial public offering (IPO) comes at a time when there is a dearth of IPOs.

The energy services group’s listing on Feb 8 marks the country’s biggest listing in 19 months.

The largest Malaysian IPO this year was by Ranhill Holdings Bhd for RM386.8mil through a reverse takeover, according to Reuters data.

Malakoff Corp Bhd and Sunway Construction Group Bhd raised RM2.74bil and RM550mil, respectively, in May and July 2015.

Through its public issue, Serba Dinamik Holdings aims to raise total gross proceeds of RM407.1mil, of which about 73.69% of proceeds will be used for the expansion of the group’s business and operational facilities, and about 7.20% for working capital.

A further 14.74% of the proceeds will be utilised for repayment of bank borrowings/financing while the balance of 4.37% will be allocated to defray estimated listing expenses.

The company, which is issuing up to 389.4 million shares at an issue price of 50 sen each, is offering for sale up to 118 million existing shares and 271.4 million new shares.

Of this, 153.5 million will be allocated to bumiputra investors, 187.78 million to institutional investors and the remaining 48.1 million to retail investors.

RHB Investment Bank Bhd and Affin Hwang Investment Bank Bhd are the joint principal advisers, joint bookrunners and joint underwriters, while AmInvestment Bank Bhd and Kenanga Investment Bank Bhd are joint underwriters for the IPO.

RHB Investment Bank is also the managing underwriter for the listing exercise.

Serba Dinamik, which launched its prospectus yesterday, said in a statement that it had experienced rapid growth over the past three years, particularly in the Middle East, which contributed 47.3% to its total revenue in 2015.

“The downturn in oil prices over the period has also led to asset owners turning to companies like Serba Dinamik for cost-effective solutions, thus strengthening its revenue at a compounded annual growth rate of 61.8% from RM536.2mil in 2013 to RM1.41bil in 2015.”

In the same statement, group managing director and group chief executive officer Datuk Dr Mohd Abdul Karim Abdullah said the company had started to embark on its asset-ownership business model with its first compressed natural gas plant located in Muaro Jambi, Sumatra, Indonesia.

He said the company had two ongoing memorandums of understanding for the partnership agreement to develop small gas power plants and water utilities in East Kalimantan with the local government district development body.

The agreement will also involve the joint development and ownership of a small gas power plant in Muaro Jambi, Sumatra, Indonesia with a local government-owned power corporation.

“In addition, we are looking at opportunities to grow our business through investment and acquisition, but not limited to maintenance, repair and overhaul service providers and small hydropower generation companies that can potentially add value to our existing business operations.

“The successful investment and acquisition will potentially generate an incremental revenue stream for the group while enhancing our competitive advantages within the industry,” he added.