M&A Securities to underwrite 43 mil SDS Group shares

(From left): M&A Securities Sdn Bhd head of corporate finance Gary Ting, SDS Group Bhd executive director Tan Kim Chai, SDS Group managing director Tan Kim Seng, M&A Securities managing director of corporate finance Datuk Bill Tan, M&A Securities executive director/head of operations Goh Hock Jin and SDS Group chairman Lim Pang Kiam. Photo by SDS Group

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KUALA LUMPUR (July 18): M&A Securities Sdn Bhd will underwrite 43.42 million new shares of SDS Group Bhd in conjunction with the bakery products manufacturer's initial public offering (IPO) on the ACE Market of Bursa Malaysia.

SDS managing director Tan Kim Seng said the underwriting agreement, which was signed today, reiterates the underwriter's confidence in his company, bringing it a step closer towards listing on the stock market.

"The listing exercise enables us to tap into the equity capital market for future fund raising and to provide us the financial flexibility to pursue future growth opportunities as and when they arise.

"By being a listed entity, we hope to further increase the brand visibility of 'Top Baker' and 'Daily's' in the bakery industry as well as 'SDS' in the food and beverages industry in Malaysia," said Tan in a statement.

SDS' IPO exercise entails the issuance of 104.29 million new shares, representing 25.7% of the enlarged share capital.

Out of this, 20.29 million shares will be made available to the Malaysian public, 23.13 million for eligible directors, employees and business associates or persons who have contributed to the success of the group, while 60.87 million shares are earmarked for private placement to selected investors.

The company said the proceeds from the listing exercise will be used mainly to expand its business presence for the wholesale and retail channels within the northern and central regions of Peninsular Malaysia.

See also: Bakery SDS Group aims for ACE Market IPO