Cable and wire manufacturer Southern Cable Group Bhd is seeking a listing on the ACE Market of Bursa Malaysia to raise funds for its business expansion and enhance its existing and new operating facilities in Malaysia.

In a draft prospectus filed with the Securities Commission Malaysia, Southern Cable's initial public offering entails the issuance of 104.67 million new shares, representing 26.17% of its enlarged issued share capital, and an offer for sale of 10 million shares by one of its promoters Sino Shield Sdn Bhd.

Of the public issue, 20 million shares will be made available for application by the Malaysian public via balloting, 11 million shares to eligible directors and employees, 33.67 million to be placed to selected investors, and 40 million shares to selected Bumiputera investors.

The company’s promoters and selling shareholders are Sino which holds a 51.73% stake in Southern Cable; Semangat Handal Sdn Bhd (43.35%); and the rest is held by Southern Cable executive director Wong Meng Kee, his wife Tung Cheng Im, who is also costing manager of Southern Cable, Cheng Im's sister Tung Siew Luan and other individual shareholders.

The shareholders of Semangat are Fawiza Binti Faiz and Redzuan Bin Husain, while that of Sino are Southern Cable managing director Tung Eng Hai, his wife Ooi Gaik Bee and Wong.

Upon listing, the promoters will hold in aggregate 38.32% of the enlarged issued share capital.

Southern Cable said of the total proceeds from the IPO, 42.15% will be used for capital expenditure and expansion, 14.73% to repay bank borrowings, 36.8% for working capital, and the rest to pay listing expenses.

Southern Cable comprises three wholly-owned subsidiaries, namely Southern Cable Sdn Bhd, Nextol Polymer Sdn Bhd and Daya Forwarding Sdn Bhd.

The cable and wire manufacturing operations accounted for 90.1% of total revenue for the financial year ended Dec 31, 2018 (FY18). The remaining 9.9% were derived from related products and services.

Its principal market is Malaysia, which contributed 98.4% of total revenue for FY18. As at May 29, 2019, Southern Cable is a registered supplier of cables and wires with Tenaga Nasional Bhd, Sabah Electricity Sdn Bhd, Telekom Malaysia Bhd and Petroliam Nasional Bhd.

Southern Cable's order book stood at RM242.63 million as at May 29, 2019.

The group posted a 44.3% increase in net profit to RM26.23 million in FY18 from RM18.19 million the previous year, while revenue rose 14.7% to RM683.2 million from RM595.69 million in FY17.

Southern Cable said it plans to pay out at least 15% of its net profit in dividends, post-listing.

MIDF Amanah Investment Bank Bhd, as its sole underwriter, has agreed to underwrite 31 million shares.

https://www.theedgemarkets.com/article/sout...iness-expansion

This post has been edited by nexona88: Oct 14 2020, 04:46 PM

Listing in late March?

Really wrong timing if list in March

cable manufacturing
is the future bright in this industry?
can't visit their website http://www.southerncable.com.my/.
donno their BOD and management.
Only found their FB fan page, which is only setup last year March 2019

This post has been edited by Rainings: Feb 27 2020, 10:50 PM

some of these IPO companies, they only set up their website when they know they are going to get IPO'd. Just to get the public exposure going.

Southern Cable to raise RM71.2m from ACE Market IPO

KUALA LUMPUR (Sept 29): Cable and wire manufacturer Southern Cable Group Bhd is aiming to raise RM71.2 million from its initial public offering (IPO) on the ACE Market of Bursa Malaysia.

Southern Cable manufactures cables and wires that are used for power distribution and transmission, communications as well as control and instrumentation applications.

The key supporting activities for the cable and wire manufacturing operations include furnace and casting operations and manufacturing of plastic compounds.

In a statement today in conjunction with its prospectus launch, Southern Cable managing director Tung Eng Hai said the group’s listing on the ACE Market is aimed at elevating Southern Cable’s profile and raise funds to expand production capacity of cables and wires and plastic compound materials to cater for future growth

Southern Cable services various industry sectors, such as power distribution and transmission, telecommunications, building and construction, infrastructure, manufacturing and processing industries, including oil and gas (O&G) processing and petrochemical plants.

Its customers include Tenaga Nasional Berhad (TNB) and Telekom Malaysia Bhd ™, and it has supplied cables and wires for the Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor and the Mass Rapid Transit (MRT) Sungai Buloh-Kajang Line (MRT 1).

From the total proceeds raised, the group has allocated RM30 million for capital expenditure and expansion.

Of this, RM18.5 million is allocated to purchase and upgrade machinery and equipment, followed by RM7.5 million to construct new factories, and RM4 million to fund the purchase and installation of enterprise resource planning (ERP) information technology systems.

Meanwhile, RM27.5 million will be set aside as working capital, while RM9.2 million will be utilised for repayment of bank borrowings and RM4.5 million to defray estimated listing expenses.

Tung said the construction of two new factories near its current production plants in Kuala Ketil, Kedah will increase the total built-up area from more than 416,000 sq ft to more than 480,000 sq ft.

“Together with the new machines and upgrade in current factory, this will expand our total production capacity by 9,050km of cables and wires to 40,130km of cables and wires per year by the first half of 2022.

“To support the higher production capacity, we are setting up a new polyvinyl chloride (PVC) compound production plant next to our current factory in Sungai Petani, Kedah, [to be completed] by the first half of 2022.

“With this plant, we target to increase our manufacturing capacity of PVC compound material by 4,200 tonnes to 12,000 tonnes per year,” he said.

Tung said these initiatives should strengthen the company's position in the cable and wire sector.

Southern Cable’s IPO entails a public issue of 209.3 million new shares and an offer for sale of 20 million existing shares at an issue price of 34 sen per share.

Out of 209.3 million new shares, 40 million shares are allocated for application by the Malaysian public, followed by 22 million shares for application by eligible directors, employees and persons who have contributed to the success of the group.

Meanwhile, 67.3 million shares under the public issue are allocated for private placement to selected investors, and 80 million shares to identified bumiputera investors approved by the Ministry of International Trade and Industry (MITI).

Some 20 million existing shares will be offered for sale by way of private placement to selected investors.

From the financial year ended Dec 31, 2016 (FY16) to FY19, Southern Cable’s group revenue increased from RM470.7 million to RM656.7 million, reporting a three-year compound annual growth rate (CAGR) of 11.7%.

The group's net profit reported a three-year CAGR of 26.4% from RM14.2 million to RM28.5 million for the same time frame.

Southern Cable intends to implement a dividend policy of distributing a minimum of 15% of its annual net profit to shareholders of the group.

With the prospectus launch, applications for Southern Cable’s IPO will open today and close on Tuesday, Oct 6, at 5pm.

Southern Cable targets to list on the ACE Market on Oct 16.

MIDF Amanah Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.


From The Edge

Million dollar question from aunties and uncles:

so can buy mou?

This post has been edited by tehoice: Sep 30 2020, 09:33 AM

How ya ?

Which one better

If you want to sell on the first day of listing, go for the cheaper one.

PE10x at IPO price.

Why always many ipo stick together like last time.
Can focus our fund...

apply small lots lohhh
no harm trying geh.
normally IPO on first day sure hot hot hot and up a bit then will come down to ipo price or near IPO price.

How to apply for ipo? Using mplus can?

use your online banking or atm also can apply.

or if you wanna fill the white form, you can also ask for it, fill the form manually, then buy bank draft and send everything to the share registrar before the closing date.

so long you have a legit open CDS account then you can apply for IPO already.

It's client include TNB & TM...
So there's some growth... Esp TM... In rural areas... Such as Sabah 🤑

lai, any other info you want to know, my ex koliq working on this ipo. her first ipo baby deal.

First day IPO will up by how many %?

hahaha that 1 another crystal ball needed, but i'm guessing around 40c.

so maybe we could be looking at a 20% gain instantly.

Oh really...
Good to know 👍

Well what's the company personal views on the prospect...
Can they win more contracts with current covid 19 situation.....

Also what's the TP for this IPO 🤑

How's the prospect of the company's business? Is it a touch and go or for long-term play?