From left: Signature Alliance Group Bhd (SAG) promoter and substantial shareholder Melvin Ng, Affin Hwang Investment Bank Bhd head of equity capital markets Arvin Chia, Affin Hwang Investment Bank managing director, capital markets Johan Hashim, SAG executive director Mario Foo, SAG chairman Datuk Wan Ahmad Satria Wan Hussein, SAG substantial shareholder Datuk Seri Chiau Beng Teik, SAG executive director/group CEO Darren Chang, SAG substantial shareholder Chiau Haw Choon, M & A Equity Holdings Bhd managing director Datuk Bill Tan, M & A Securities Sdn Bhd head of corporate finance Gary Ting and SAG director Lau Kock Sang.
KUALA LUMPUR: Signature Alliance Group Bhd
(SAG) has signed an underwriting agreement with M & A Securities Sdn Bhd and Affin Hwang Investment Bank Bhd (AHIBB) for its listing on the ACE Market of Bursa Malaysia Securities Bhd.
In a statement, the premier interior fitting-out specialist said its initial public offering (IPO) would involve a public issue of 260 million new shares, representing 26.0% of its enlarged share capital of one billion shares upon listing. No existing shares will be offered for sale.
Of the 260 million new shares, 50 million will be offered to the Malaysian public via balloting, while 30 million will be allocated to eligible directors, employees of the SAG Group, and individuals who have contributed to its success under the pink form allocations.
Additionally, 20 million shares will be reserved for application by entitled shareholders of Signature International Bhd (SIB) under the restricted suffering.
The remaining 160.0 million new shares will be placed out to Bumiputera investors approved by the Ministry of Investment, Trade and Industry and selected investors.
Under the underwriting agreement, M&A Securities, as the managing underwriter, and AHIBB, as the joint underwriter, will jointly underwrite a total of 100 million new shares allocated to the Malaysian public, pink form allocations, and entitled shareholders of SIB.
SAG, a subsidiary of SIB, is principally involved in the provision of interior fitting-out services and building construction works.
For the three financial years ended Dec 31, 2021 (FY21), to Dec 31, 2023, and up to Aug 31, 2024, SAG has completed 286 interior fitting-out projects with a total value of RM325.3 mil.
As at Aug 31, 2024, the company has 57 ongoing projects with total contract value of RM663.4mil, which is expected to be realised progressively over the next one to two financial years.
Out of this contract value, RM417.8mil or 63.0% remains unbilled as at Aug 31, 2024.
SAG executive director/group chief executive officer of SAG Darren Chang said the IPO would provide funding for the company’s expansion and enable the public to participate in SAG’s growth.
“We intend to centralise our corporate offices and production operations through setting up corporate office and production facility in Selangor to improve the overall efficiency of our operations and production process.
“We also intend to expand our existing branch office in Pulau Pinang and establish a new branch office in Johor to strengthen our presence regionally in Peninsular Malaysia,” he added.
For FY21, SAG’s revenue jumped from RM73.4 million to RM173.4 million in FY2023, registering a 2-year compounded annual growth rate (CAGR) of 53.7%.
SAG’s substantial shareholders include SIB, Chang, Mario Foo (executive director) and Melvin Ng (promoter and substantial shareholder).
The company is tentatively scheduled to list on the ACE Market of Bursa Securities in June 2025.
M&A Securities is the adviser, sponsor, managing underwriter and joint placement agent while AHIBB is the joint underwriter and joint placement agent for the IPO exercise.
