Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Dec 30): Serba Dinamik Holdings Bhd, an energy services group which is en route to a Main Market listing on Bursa Malaysia, is looking to raise as much as RM584.1 million from its initial public offering (IPO) exercise.

The group expects to enlarge its market capitalisation of approximately RM2 billion upon its listing on Feb 8, 2017.

As part of the IPO exercise, Serba Dinamik will offer to the public 118 million existing shares and 271.4 million new shares of par value of 50 sen each, at a retail price of RM1.50 per share.

Its group managing director cum group chief executive officer Datuk Mohd Karim Abdullah said out of the total IPO proceeds, RM407.1 million or 73.69% will be utilised for the expansion of the group's business and operational facilities over the next one to three years.

Mohd Karim added that about 7.2% of the proceeds will be utilised for working capital.

"A further 14.74% of the proceeds will be utilised for repayment of bank borrowings or financing while the balance of 4.37% will be allocated to defray estimated listing expenses," he said at the company's prospectus launch today.

Through the IPO, the group is offering 153.53 million shares to Bumiputera investors, while 187.78 million shares will be for institutional or selected investors and 48.1 million shares for retail.

To recap, over the past three years the group has experienced rapid growth particularly in the Middle East, which contribute 47.3% to its total revenue in financial year ended Dec 31, 2015 (FY15) despite the downturn in oil prices over the period.

"With the revenue registered compound annual growth rate of 61.8% from RM536.2 million in FY13 to RM1.4 billion in FY15," Mohd Karim said.

Incorporated in 1993 as an engineering solutions provider for the oil and gas and power generation industries, the group had also started to embark on assets ownership business model with its first compressed natural gas plant located in Muaro Jambi, Sumatra, Indonesia.

"In line with efforts to expand on our asset ownership business model's strategy, currently we have two ongoing memoranda of understanding for the partnership agreement with Indonesian local authority to develop power plants and water utilities in Kalimantan and a joint development and ownership of a power plant in Muaro Jambi, Sumatra," Mohd Karim said.

Going forward, the group is looking at opportunities to grow the business through investment and acquisition from the US and Europe.

"But it will not [be] limited to maintenance, repair and overhaul service providers and small hydropower generation companies that can potentially add value to our existing business operations.

"This investment and acquisition will potentially generate an incremental revenue stream for the group while enhancing our competitive advantages within the industry," he said when speaking to reporters.

 

      Print
      Text Size
      Share