HE Group Bhd aims to raise RM24.33mil in proceeds from its upcoming initial public offering (IPO) for business expansion purposes.

The electrical engineering service provider, slated for a listing on the ACE Market of Bursa Malaysia on Jan 30, 2024, said RM15.13mil or 62.19% of the gross proceeds will be used to supplement the working capital requirements in tandem with the expected growth in the group’s business.

Meanwhile, RM3.65mil or 15% of the gross proceeds is earmarked for business expansion, including the growth of the group’s workforce, strengthening of its internal capabilities, and the establishment of two new offices in Kedah and Johor.

The group is also allocating RM1.75mil, representing 7.19% of the gross proceeds, for capital expenditure while the remaining proceeds will cover listing-related expenses.

With an enlarged share capital of 440 million and an IPO price of 28 sen per share, the group will have a market capitalisation of RM123.2mil upon listing.

HE Group managing director Haw Chee Seng said the group's order book amounted to RM211.91mil as at Dec 15, 2023, which would keep the group busy until end-2024.

“Our track record in serving critical and high-value industries such as semiconductors, medical devices, and electronic product industries demonstrates our strengths and capabilities.

https://www.thestar.com.my/business/busines...mil-in-from-ipo

Opening of application - 12 Jan 2024

Closing of application - 18 Jan 2024

Balloting of application - 22 Jan 2024

Allotment of IPO shares to successful applicants - 29 Jan 2024

Tentative listing date - 30 Jan 2024

KUALA LUMPUR: HE Group Bhd plans to raise RM24.33 million for business operations and expansion through its upcoming initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia.

The electrical engineering services provider will be listed on Jan 30, 2024.

The group's IPO exercise comprises the issuance of 86.89 million new shares in HE Group, constituting 19.75 per cent of HE Group's enlarged share capital.

Out of the 86.89 million new shares, 22.00 million will be made available to the Malaysian public via balloting; and 11.00 million shares will be to eligible directors, employees and persons who have contributed to the success of the group. The remaining 53.89 million shares will go towards private placements to selected investors.

With an enlarged issued share capital of 440.00 million shares and an IPO price of RM0.28 per share, HE Group will have a market capitalisation of RM123.20 million upon listing.

Out of the total proceeds, RM15.13 million, constituting 62.19 per cent of the gross amount, is allocated to support HE Group's operational needs, aligning with the anticipated business expansion.

Another RM3.65 million or 15 per cent of the gross proceeds is designated for HE Group's growth initiatives, encompassing workforce expansion, enhancement of internal capabilities, and the establishment of two new offices in Kedah and Johor.

Additionally, the company is earmarking RM1.75 million or 7.19 per cent of the gross proceeds, for capital expenditure, with remaining funds intended to cover expenses associated with the listing process.

HE Group managing director Haw Chee Seng said that the company's IPO is geared towards actualising strategic expansion initiatives, solidifying their standing as a significant player in the industry.

"Our track record in serving critical and high-value industries such as semiconductors, medical devices, and electronic product industries demonstrates our strengths and capabilities."Leveraging on this, we are confident in expanding our industry coverage to include data centres, a sector experiencing increased investments due to favourable government policies and sharing the critical need for high-quality power supply," he added during the prospectus launch today.

Timetable for IPO
Opening of application: 12 Jan 2024
Closing of application: 18 Jan 2024
Balloting of application: 22 Jan 2024
Allotment of IPO shares to successful applicants: 29 Jan 2024
Tentative listing date: 30 Jan 2024

This post has been edited by ronnie: Jan 16 2024, 10:34 PM

Thanks mod admin lowyat forum for merging duplicate thread on same IPO

ronnie boss please take note

this one interesting, expanding into data centres with presence to be available in johor

looks healthy too overall, just not really a fan of high gearing ratios

nice of the mod to merge together.... sorry we posted about 5 min away from each other

Actually I also didn't know about this IPO

Someone PM me ask to open 1....

same same maybe insider

Aiya, becauae too good, dont want you to enter hehe

#tayor

Lolz 😆😂

Anyway tomorrow closing

Any TP / FV to share

Apex 0.62

anybody can share the IPO ref number until now.tq

0.28 to 0.62 ???
APEX high ke ?

They got the price wrong. FV 62sen is based on price 50sen. Actual price is 28sen. TA give FV 44sen

updated: apex changed the FV to 36sen

This post has been edited by nuke13: Jan 17 2024, 03:00 PM

i wonder whether this has good sub rate

if they can utilize the funds to expand into data centre that would be nice

Any opinions on the company prospect??

Having some doubt

Hope more tp tomorrow...will apply some

Gud lucks

Good start for my Maybank number 3766

Applied

Applied some 🔥