KUALA LUMPUR (April 20): MN Holdings Bhd, which is slated for listing on Bursa Malaysia’s ACE Market on April 28, said on Wednesday (April 20) that its initial public offering's (IPO) public portion was oversubscribed by 118.48 times after 17,205 applications seeking 2.44 billion new shares, valued at RM512.81 million, were received from the Malaysian public for 20.44 million new shares that were made available for the Malaysian public subscription.
According to the underground utilities and substation engineering services and solutions provider's prospectus, its IPO involves a public issue of 81.75 million new shares and an offer for sale of 40.88 million existing shares in the company at 21 sen each.
At 21 sen a share, MN Holdings will have a market value of about RM85.84 million based on the company's enlarged number of issued shares at 408.75 million upon listing, according to the prospectus.
In a statement on Wednesday, MN Holdings’ managing director Loy Siong Hay said the new share oversubscription from the Malaysian public is a vote of confidence for the company’s business model and growth strategies.
“Going forward, we would strive to secure more contracts and build our order book by leveraging on our competitive strengths,” Loy said.
“Equipped with a wide range of machinery, we are capable to undertake a comprehensive range of services for underground utilities engineering projects and provide integrated solutions with execution capabilities for substation engineering projects,” he said.
According to MN Holdings’ statement, as at March 9, the company had completed 375 contracts with a cumulative value of RM261 million in the underground utilities and substation engineering services and solutions segments.
The company said it had a total order book of approximately RM172.2 million as at March 9, comprising RM135.4 million from the underground utilities engineering services and solutions segment, and RM36.8 million from the substation engineering services and solutions segment.
"This order book will be recognised progressively over the next one to four financial years based on the expected progress of each project,” MN Holdings said.
In its prospectus which was filed with Bursa Malaysia on April 8, MN Holdings said it primarily serves the power utility sector in Malaysia and is mainly responsible for providing engineering services and solutions with necessary machinery, labour and expertise for infrastructure utilities construction that the company undertakes.
"Our customers are primarily main contractors for power projects, property developers and industries that require our services and solutions to enable the supply of power to specific locations and/or premises,” MN Holdings said.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for MN Holdings' IPO, according to the prospectus.