SKA Capital draws 80.42 times oversubscription ahead of ACE listing
The IPO will raise RM103.4 million, with RM72.3 million going to the company and RM31.13 million to its managing director.
Demand for SKA Capital Bhd’s public IPO allocation exceeded availability by 80.42 times, according to TA Securities Holdings Bhd. The electrical engineering firm is due to enter Bursa Malaysia’s ACE Market on Nov 11.
TA Securities reported 25,026 applications covering 3.65 billion shares, worth RM1.57 billion, against a public offering of 44.78 million shares. Oversubscription reached 100 times in the non-Bumiputera category and 60.84 times in the Bumiputera category.
Eligible persons took up their full allocation of 8.96 million shares. The private placement allocations were also taken up entirely by selected investors and Bumiputera investors with approval from the Ministry of Investment, Trade and Industry.
At 43 sen per share, the IPO implies an expected market capitalisation of RM385 million. Of the RM103.4 million to be raised, the company will get RM72.3 million. Managing director Datuk Subas Kumar Ambairam will receive RM31.13 million from selling existing shares.
The company’s proceeds will fund working capital of RM32.72 million and performance bonds of RM21 million to secure future projects. Machinery and equipment will account for RM12.05 million, while listing expenses will use RM6.5 million.
SKA Capital’s operations cover engineering services for substations and underground utilities, alongside trading in electrical equipment and construction materials used for power infrastructure.
It recently won six subcontracts with a combined value of RM89.28 million for electrical infrastructure work on Tenaga Nasional Bhd projects. Those awards add to an outstanding order book previously reported at about RM313 million.
