KUALA LUMPUR: Critical Holdings Berhad has entered into an underwriting agreement with MIDF Amanah Investment Bank Berhad for the company's initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The IPO entails a public issue of 74.348 million new shares and an offer for sale of 37.174 million existing shares of the company.
Of the 74.348 million issue shares, 18.587 million will be made available to the Malaysian public via balloting, 3.717 million will be allocated to the eligible directors and employees of Critical Holdings, 46.467 million will be allocated for Bumiputera investors, and 5.576 million will be allocated by way of private placement to selected investors.
Pursuant to the underwriting agreement, MIDF Investment shall underwrite 22.304 issue shares that are available for application by the Malaysian public and eligible persons.
Critical Holdings provides mechanical, electrical, and process utilities engineering solutions, as well as maintenance and services for critical facilities like plantrooms, cleanrooms, and data centres.
In a statement, the company said that the proceeds from the IPO will be used to acquire a new regional office, expand sales and technical teams, fund capital expenditures, supplement working capital requirements, and defray listing expenses.
The acquisition and setting-up of a new regional office in the central region of Peninsular Malaysia would allow the company to better support its future expansion to the central and southern regions of Peninsular Malaysia, it said.
"The signing of the underwriting agreement symbolises a significant milestone for Critical Holdings as it brings us one step closer to being a listed entity. The IPO will provide funding for our expansion and enable the public to participate in the company's future growth," said Tan Si Lim, the company's non-independent executive director and chief executive officer.
"We aim to increase our presence in MEP design and engineering solutions for critical facilities within the various industries, further expanding our capacity to undertake substantial MEP Engineering Solutions projects," he said.