KUALA LUMPUR (Feb 8): Solar District Cooling Group Bhd's proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia would involve up to 118.67 million shares, according to its prospectus exposure with Bursa Malaysia Securities Bhd.

Of the 118.67 million shares, 21.19 million shares will be for the public via balloting, followed by 21.19 million shares for eligible directors, employees and persons who have contributed to the success of the group, while the remaining 76.29 million shares are for private placement to selected investors.

Solar District Cooling is principally involved in the provision and maintenance of building management systems, solar thermal systems and energy-saving services.

The company also undertakes system and equipment maintenance projects comprising gas fired chillers and chilled water systems.

Solar District Cooling said it intends to utilise the IPO proceeds to finance its headquarters expansion, allocations for tender bonds and/or performance bonds for future projects, purchase of materials for solar thermal systems and energy-saving services, general working capital, and capital expenditure, as well as listing expenses.

The prospectus exposure did not specify the targeted allocation for each section of the funds to be raised.

On the financial front, Solar District Cooling reported a profit after tax (PAT) of RM5.18 million for the financial year ended Dec 31, 2022 (FY2022), up from RM4.23 million for FY2021. It logged a PAT of RM1.98 million for FY2020.

The prospectus exposure also stated that the company does not have a formal dividend policy.

Solar District Cooling’s non-independent managing director Edison Kong is deemed to hold 90% of the group’s share capital, while non-independent executive director Eileen Liuk holds the remaining 10%.

Post IPO, their deemed interest will be diluted to 64.8% for Edison Kong and 7.2% for Eileen Liuk.

Mercury Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.