Kawan Renergy Berhad has entered into an underwriting agreement with M & A Securities Sdn Bhd in conjunction with its upcoming initial public offering on the ACE Market of Bursa Malaysia Securities Berhad.
The company is principally involved in the design, fabrication, installation and commissioning of industrial process equipment, process plants as well as renewable energy and co-generation plants. Separately, it is also involved in the power generation and sale of electricity business through Bercham Plant, a landfill biogas power plant located in Ipoh, Perak with an installed capacity of 1.2-megawatt of electricity and a net export capacity of 1.0MW.
The IPO entails a public issue of 110.0 million new ordinary shares, representing 20.0% of its enlarged share capital, as well as an offer for sale of 34.5 million existing shares, or 5.3% of its enlarged share capital to selected investors by way of placement and 1.0% to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
M & A Securities will underwrite a total of 46.8 million shares made available to the Malaysian public and the Pink Form Allocations.
Managing Director, Ir. Lim Thou Lai said, “The IPO proceeds will mainly be used as working capital to enable the Group to undertake more quality projects, moving up the value chain as well as to strengthen our power generation and sale of energy business.”
Kawan Renergy is scheduled to be listed on the ACE Market of Bursa Securities by the second quarter of 2024, with M & A Securities as the Principal Adviser, Sponsor, Underwriter and Placement Agent for its IPO.
