KUALA LUMPUR: Solar District Cooling Group Bhd plans to raise RM45.09 million through its initial public offering (IPO) upon listing on Bursa Malaysia's ACE Market on Sept 19.
This will be through the issuance of 118.67 million shares at 38 sen each.
Of the total proceeds, RM1.90 million will be allocated for the expansion of its headquarters in Kajang, Selangor, while RM5 million for tender bonds and/or performance bonds for future projects.
A total of RM18.70 million will be used for the purchase of materials for building management system (BMS) segment, and solar thermal systems and energy-saving services segment, and RM12.67 million for general working capital.
The remaining RM2.52 million is for capital expenditure, including new equipment for BMS, installation and maintenance of solar thermal hot water systems, and purchasing ICT software and services, and RM4.30 million for estimated listing expenses.
Solar District's market capitalisation is expected to be RM161.05 million upon listing.
Managing director Edison Kong said the IPO represents a significant milestone in the company's journey.
Since 2008, it had been driven by a commitment to innovation, efficiency, and sustainability, he added.
"Our focus on delivering building management systems and solar thermal technologies has helped us enhance energy efficiency and promote environmental stewardship.
"With this listing, we look forward to embracing new opportunities and setting new standards in our business," he said in a statement.
Solar District and its subsidiaries are principally involved in the provision and maintenance of BMS, solar thermal systems and energy saving services.
The company's clients are concession companies that are providing hospital support services for public hospitals.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO