ACO eyes selling 58mil shares in IPO


  • Markets
  • Tuesday, 04 Feb 2020

Proceeds from the proposed initial public offer (IPO) will be utilised to strengthen its market share, managing director Ir Tang Pee Tee @ Tan Chang Kim said in a statement yesterday.

KUALA LUMPUR: ACO Group Bhd, a distributor of electrical products and accessories, is planning to sell 58 million shares in the company for its listing on the Ace Market.

Proceeds from the proposed initial public offer (IPO) will be utilised to strengthen its market share, managing director Ir Tang Pee Tee @ Tan Chang Kim said in a statement yesterday.

“In executing our expansion plan, we aim to set up new sales outlets, distribution centres, lighting concept stores and a new head office, as well as to purchase new trucks and upgrade our Information Technology (IT) systems, ” he said.

“Furthermore, we will be expanding our range of third party and own brand electrical products and accessories.”

For its IPO, ACO Group has roped in Alliance Investment Bank Bhd as the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.

The IPO exercise entails a public issue of up to 58 million new shares and an offer for sale of up to 25mil existing shares by way of private placement to identified investors.

Of the 58mil new shares which represent 19.3% of ACO Group’s enlarged issued share capital upon listing, 15 million shares will be allocated to the Malaysian public via balloting with at least half of it reserved bumiputra investors, while nine million shares are allocated to eligible directors, employees and persons who have contributed to the success of the group and four million shares to investors by way of private placement.

With its first lighting concept store in Johor Baru, ACO Group is looking to tap into opportunities in the building and construction industry which includes renovation and interior fit-outs segment of the market.

The group noted that the concept store would allow for the display and promotion of a range of electrical appliances and accessories including third party and own brands, which mainly cover decorative light fixtures, lighting controls, switches and fans.

ACO Group is an authorised distributor for 10 brands of electrical products and accessories that include Schneider Electric, KDK, Hager, Omron, ABB, Panasonic, Ledvance, Maxguard, Siemens and Yaskawa.

The group distributes approximately 85 third party brands of electrical products and accessories.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Across The Star Online