From left: Gary Ting, Tan Kim Chai, Tan Kim Seng, Datuk Bill Tan, Goh Hock Jin and Lim Pang Kiam at the signing of an underwriting agreement between bakery products maker SDS Group Bhd and M&A Securities Sdn Bhd on July 18, 2019.
KUALA LUMPUR: Bakery products maker SDS Group Bhd
will issue 104.29 million new shares or 25.7% of the enlarged share capital under its proposed listing on the ACE Market.
The company said on Thursday 20.29 million shares would be offered to the public, 23.13 million shares to its eligible directors, employees and business associates while the remaining 60.87 million shares would be placed out.
SDS, which signed an underwriting agreement with M&A Securities Sdn Bhd, is scheduled to be listed by October 2019. M&A Securities is the adviser, sponsor, underwriter and placement agent for the listing exercise.
Proceeds from the IPO will be used to expand its wholesale and retail channels in the northern and central regions, underpinned by its new manufacturing plant in Seremban. The rest will be for general working capital; repayment of bank borrowings and for defraying the listing expenses.
Signing on behalf of SDS Group was its managing director Tan Kim Seng, executive director Tan Kim Chai while M&A Securities was represented by its executive director/head of operations Goh Hock Jin and managing director of corporate finance, Datuk Bill Tan.
Tan said the listing exercise enables SDS Group to tap into the capital market for future fund raising and also provide it with the financial flexibility to pursue growth opportunities.
“By being a listed entity, we hope to further increase the brand visibility of ‘Top Baker’ and ‘Daily’s’ in the bakery industry as well as ‘SDS’ in the food & beverages industry in Malaysia,” he added.
Also present at the signing ceremony were M&A Securities head of corporate finance Gary Ting and SDS chairman Lim Pang Kiam.
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