Serba Dinamik plans Bursa debut with 389.41 million shares

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This article first appeared in The Edge Financial Daily, on October 10, 2016.


KUALA LUMPUR: Serba Dinamik Holdings Bhd, an international energy services group that provides engineering solutions to the oil and gas and power generation industries, is looking to float its shares on the Main Market of Bursa Malaysia.

The initial public offering (IPO) involves 389.41 million shares of 50 sen each, representing 29.17% of its enlarged issued and paid-up share capital, according to the group’s draft prospectus published on the Securities Commission Malaysia’s website.

The IPO comprises a public issue of 271.4 million new shares, and an offer for sale of up to 118 million shares.

Of the lot, up to 341.3 million shares have been earmarked for institutional offering; the retail portion is made up of 48.1 million shares to directors and employees, as well as the Malaysian public.

Serba Dinamik provides engineering solutions to the oil and gas and power generation industries, and has operational facilities in Malaysia, Indonesia, the United Arab Emirates, Bahrain and the UK. Within engineering solutions, the group provides operational and maintenance services and engineering, procurement, construction and commissioning works.

As an extension of its core competencies in providing maintenance services, Serba Dinamik has started to embark on its asset owner business model strategy with the company’s first compressed natural gas plant in Muaro Jambi, Sumatra, Indonesia.

Moving forward, the group intends to continue to expand this strategy through the development of small gas power plant and water utilities in Indonesia.

The company is led by its group managing director and group chief executive officer (CEO) Datuk Dr Mohd Abdul Karim Abdullah and deputy CEO Datuk Awang Daud Awang Putera, as well as its chairman Datuk Mohamed Nor Abu Bakar.

Mohd Abdul Karim is the largest shareholder of the company with a 36.51% stake, followed by non-executive director Abdul Kadier Sahib with a 28.96% stake and Awang Daud with a 18.46% stake.

Serba Dinamik intends to use 73.69% of its IPO proceeds to expand its business and operational facilities, 14.74% for repayment of bank borrowings and financing, 7.2% for working capital and 4.37% for estimated listing expenses.

For the financial year ended Dec 31, 2015 (FY15), Serba Dinamik’s net profit more than doubled to RM156.56 million from FY14’s RM67.37 million, as revenue came in 85.6% higher at RM1.4 billion from RM755.77 million.

Serba Dinamik, which is a Petroliam Nasional Bhd-licensed company in Malaysia, also plans to adopt a dividend payout ratio of at least 30% of its net profit each financial year.

RHB Investment Bank Bhd and Affin Hwang Investment Bank Bhd are the IPO’s joint principal advisers, joint book-runners and joint underwriters; RHB is also the managing underwriter.