MNHB aims to raise RM17.2mil from ACE Market IPO

(Left to right) Lee Yoke Wah, Associate Director, M&A Securities Sdn Bhd; Gary Ting, Head of Corporate Finance, M&A Securities; Datuk Bill Tan, Managing Director of Corporate Finance, M&A Securities; Datuk Clement Toh, Executive Director, MN Holdings Bhd; Loy Siong Hay, Managing Director, MN Holdings; Dang Siong Diang, Executive Director, MN Holdings; Datuk Zainurin Haji Karman, Chairman of MN Holdings; and Danny Wong, Deputy Head of Corporate Finance, M&A Securities

KUALA LUMPUR: MN Holdings Bhd (MNHB) plans to raise RM17.2mil from its listing on the ACE Market of Bursa Malaysia for business expansion.

The underground utilities and substation engineering specialist said of the proceeds, RM5.84mil will go towards purchasing machinery and equipment, RM4.3mil for general working capital and the remainder to repay bank borrowings and cover the listing expenses.

“Currently, our Group finances general working capital through a combination of internally generated funds and external financing such as bank borrowings.

"The allocation of proceeds for our general working capital requirements will reduce our dependency on external financing and allow us to undertake more projects concurrently,” said MNHB managing director Loy Siong Hay in a statement.

MNHB is issuing 81.75 million new shares representing about 20% of its enlarged share capital at an issue price of 21 sen per share.

Of the issuance, 20.44 million shares or 5% will be made available to the Malaysian public, 2% for eligible directors and employees, 12.5% for private placement to Bumiputera investors and 0.5% to selected investors.

There will also be an offer of sale for 40.88 million shares to selected investors by way of private placement.

Based on the enlarged share capital of 408.75 million shares, MNHB is expected to have a market capitalisation of RM85.84mil.

MNHB had an order book of about RM172.2mil as at March 9, comprising RM135.4mil from the underground utilities engineering services and solutions segment and RM36.8mil from the substation engineering services and solutions segment.

"This order book will be recognised progressively over the next one to four financial years based on the expected progress of each project,” said Loy.

The company is an exclusive partner to Tenaga Nasional Bhd-approved contractors Rental Segar Sdn Bhd and Impiana Mahir Sdn Bhd.

As at March 9, MNHB had completed 375 contracts with a cumulative value of RM261mil in the underground utilities and substation engineering services and solutions segments.