KUALA LUMPUR: Steel Hawk Bhd
, set to move to the ACE Market, aims to raise RM13.5 million through its transfer from the LEAP Market of Bursa Malaysia Securities Berhad.
The oil and gas services and equipment provider is scheduled to be listed on the ACE Market of Bursa Malaysia on Sept 5, 2024.
Deputy chairman and executive director Datuk Sharman K. Michael said the launch of its prospectus marks a pivotal moment as it embarks on a journey to list on the ACE Market of Bursa Securities.
He said the listing will provide the group with access to a wider fundraising platform to support its expansion plans and further accelerate long-term growth initiatives.
“From the RM13.5mil to be raised from the transfer of listing, we will utilise RM7mil (51.85%) to expand our overall fabrication capacity fivefold from an approximate 13 metric tonnes (MT) to approximately 65MT a month by constructing an additional fabrication yard in Kemaman, Terengganu (Teluk Kalung Facility 2),” Sharman said in a statement.
He said the Teluk Kalung Facility 2 will enable the group to overcome space constraints that previously prevented the fabrication of structures longer than six meters, thereby reducing its reliance on subcontractors for fabrication work.
“In turn, we will be able to optimise the turnaround time of our EPCC services and have more cost savings. With the new facility, we will undertake more fabrication activities as well as blasting and painting works, among others.
“To fuel our growth and capitalise on our existing technical knowledge and expertise, we aim to expand our EPCC and facilities improvement/ maintenance services to the renewable energy (RE) industry, specifically on solar energy infrastructure and hydroelectric energy,” he said, adding that the group want to provide integrated hook-up and commissioning (HUC) services to interconnect O&G infrastructure.
Sharman said RM2mil (14.81%) of the proceeds to be raised will be used to finance its working capital by purchasing raw materials such as piping, fittings, and structures.
Additionally, the group will allocate RM1mil (7.41%) for the repayment of bank borrowings while the remaining RM3.5mil (25.93%) will be used to cover the transfer of listing expenses.
The transfer of listing exercise entails a public issuance of 90.00 million new ordinary shares, making up 18.37% of the group’s enlarged share capital of 490.00 million shares.
It also involves an offer for sale of 44.70 million existing shares, or 9.12% of the enlarged share capital, to selected investors by way of private placement.
Of the 90 million new shares to be issued, 24.50 million shares—5.00% of the enlarged share capital—will be available for application by the Malaysian public. Additionally, 12.25 million shares, representing 2.50% of the enlarged share capital, will be allocated to eligible employees and individuals who have contributed to the group's success.
Meanwhile, 53.25 million new shares, representing 10.87% of the enlarged share capital, will be issued to selected investors through private placement.
Based on the IPO price of 15 sen per share and its enlarged issued shares of 490.00 million shares, Steel Hawk’s market capitalisation upon listing is approximately RM73.50mil.
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent of the listing transfer.
