KUALA LUMPUR: HE Group Bhd plans to raise RM24.33 million for business operations and expansion through its upcoming initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia.
The electrical engineering services provider will be listed on Jan 30, 2024.
The group's IPO exercise comprises the issuance of 86.89 million new shares in HE Group, constituting 19.75 per cent of HE Group's enlarged share capital.
Out of the 86.89 million new shares, 22.00 million will be made available to the Malaysian public via balloting; and 11.00 million shares will be to eligible directors, employees and persons who have contributed to the success of the group. The remaining 53.89 million shares will go towards private placements to selected investors.
With an enlarged issued share capital of 440.00 million shares and an IPO price of RM0.28 per share, HE Group will have a market capitalisation of RM123.20 million upon listing.
Out of the total proceeds, RM15.13 million, constituting 62.19 per cent of the gross amount, is allocated to support HE Group's operational needs, aligning with the anticipated business expansion.
Another RM3.65 million or 15 per cent of the gross proceeds is designated for HE Group's growth initiatives, encompassing workforce expansion, enhancement of internal capabilities, and the establishment of two new offices in Kedah and Johor.
Additionally, the company is earmarking RM1.75 million or 7.19 per cent of the gross proceeds, for capital expenditure, with remaining funds intended to cover expenses associated with the listing process.
HE Group managing director Haw Chee Seng said that the company's IPO is geared towards actualising strategic expansion initiatives, solidifying their standing as a significant player in the industry.
"Our track record in serving critical and high-value industries such as semiconductors, medical devices, and electronic product industries demonstrates our strengths and capabilities."Leveraging on this, we are confident in expanding our industry coverage to include data centres, a sector experiencing increased investments due to favourable government policies and sharing the critical need for high-quality power supply," he added during the prospectus launch today.