SKA Capital sets IPO price at 43 sen, targets RM103.4 million
The company will receive RM72.3 million, while managing director Datuk Subas Kumar Ambairam will receive RM31.13 million from selling existing shares.
SKA Capital Bhd has set an offer price of 43 sen per share for an IPO raising RM103.4 million ahead of its planned ACE Market debut on Nov 11, according to its prospectus.
Of the proceeds, RM72.3 million will flow to the electrical engineering company. Managing director Datuk Subas Kumar Ambairam will receive RM31.13 million through the sale of existing shares. Investors have until Oct 27 at 5pm to apply.
The company has earmarked RM32.72 million for working capital and RM21 million to fund performance bonds for future projects. Another RM12.05 million is allocated to buying machinery and equipment, with RM6.5 million set aside to pay listing expenses.
SKA Capital's activities include engineering work for substations and underground utilities, alongside trading in electrical devices, equipment and construction materials used in power infrastructure. Its jobs on hand amounted to about RM313 million.
Subas said the flotation would strengthen the group's finances and ability to execute projects, allowing it to pursue bigger, more complex jobs and manage several projects simultaneously as Malaysia invests in electricity infrastructure.
At listing, SKA Capital will be valued at RM385 million, equivalent to 13 times trailing earnings. TA Securities Holdings Bhd is handling the IPO as principal adviser, sponsor, underwriter and placement agent.
