Mercury Securities managing director Chew Sing Guan (left) and SDCG managing director Edison Kong.
PETALING JAYA: Solar District Cooling Group Bhd (SDCG), set to debut on the ACE Market on Sept 19, has seen its initial public offering (IPO) oversubscribed by 144.08 times.
The company received 31,678 applications for 3.07 billion new shares, valued at about RM1.17bil.
The Bumiputera portion was oversubscribed by 127.06 times, while the public category by 161.09 times.
SDCG is principally involved in the provision and maintenance of building management systems (BMS), solar thermal systems and energy saving services.
Its non-independent managing director Edison Kong believes the strong investor interest is an endorsement of the group’s strategic direction and the growth potential in BMS and energy performance services sector.
“This strong show of confidence encourages us to continue enhancing our capabilities and expanding our footprint in the BMS and energy performance services sector. We remain dedicated to delivering high-quality building energy solutions and creating lasting value for our stakeholders,” he noted.
SDCG has a proven track record of enhancing energy efficiency across the healthcare, hospitality, and industrial sectors.
It provides energy performance services to concession companies that deliver hospital support services for public hospitals.
These concessionaires have engaged SDCG as a subcontractor to carry out energy efficiency work, including the installation of hybrid solar thermal hot water systems and, in some contracts, retrofitting fluorescent lighting with LED lighting.
With an IPO price of 38 sen per share, SDCG aims to raise RM45.9mil.
About 41.5% of the proceeds, or RM18.7mil, has been allocated for purchasing materials for the building management systems (BMS) and solar thermal systems segments.
Additionally, 28.1%, or RM12.67mil, will go towards general working capital, while 11.1%, or RM5mil, is earmarked for tender bonds for future projects.
Capital expenditure will account for RM2.52mil, or 5.6% of the proceeds.
Separately, RM1.9mil, or 4.2%, will be used for expanding the company’s headquarters in Kajang, Selangor.
The remaining 9.5%, or RM4.3mil, will be used to cover listing expenses.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for this IPO exercise.
