3REN signs underwriting agreement with KAF Investment Bank for 4Q listing

From left: 3REN non-independent non-executive chairman Datul Boonler Somchit, 3REN executive director & chief digital officer Lee Chee Hoo, 3REN executive director & chief executive officer Koh Dim Kuan, KAF Investment Bank Bhd corporate finance director Hon Kim Teng and KAF Investment Bank associate director Zanzilah Khalid.

PETALING JAYA: 3REN Bhd has inked an underwriting agreement with KAF Investment Bank Bhd for its listing on the ACE Market of Bursa Malaysia, scheduled for the fourth quarter of this year.

In a statement released, the engineering services firm said the initial public offering (IPO) will entail a public issue of 11.0 million new ordinary shares and an offer for sale of up to 45.0 million existing shares.

Of the total, 32.5 million new shares being made available for application by the Malaysian public, 30.0 million new shares will be made available to eligible directors, employees and people who have contributed to the success of, and 3.8 million new shares by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia (Miti).

The remaining 43.7 million new shares will be earmarked to selected investors through private placement.

As for its offer for sale portion representing 6.9% of the group’s enlarged issued share capital, it will be placed out by way of private placement to Bumiputera investors approved by Miti.

3REN’s executive director and chief executive officer Koh Dim Kuan said the IPO proceeds will continuously support their growth trajectory while strengthening their research and development capabilities.

“This will enable us to enhance and develop new innovative solutions as well as establishing dedicated Delivery Centres to undertake certain product engineering services specifically related to the design and development of semiconductor chips. This will bolster our overall competitiveness within the wide array of industries that we serve,” Koh said.

Koh added the group has also set up a sales and marketing office in Singapore to better serve their existing multinational customers in that region, which will position them strategically for new prospective customers.

“Along with the ongoing industry 4.0 revolution and semiconductor industry growth, we are confident this IPO will allow us to further capitalise on the opportunities to enhance our operational efficiency and expand our market reach over the coming years ahead,” Koh noted.

Meanwhile, KAF Investment Bank Bhd’s chief executive officer Rohaizad Ismail said 3REN has a competitive edge and a firm stronghold in the semiconductor and electronics industry, especially in relation to the provision of customised automation solutions and engineering services.

“With the experienced management team and supported by its strong engineering and software team, we believe 3REN has a solid foundation for its future growth and will continue to excel in the long term," Rohaizad said.

"This signing marks a significant chapter in their journey, allowing them to further solidify the group’s position to capitalise on the recovering outlook of the industry and the various initiatives by our government to move up the value chain in the semiconductor industry.”