PETALING JAYA: Southern Cable Group Bhd has entered into an underwriting agreement with MIDF Amanah Investment Bank Bhd for its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The group’s listing exercise entails the public issue of 104.7 million new shares representing 26.2% of its enlarged share capital, of which 20 million will be made available for application by the Malaysian public; 11 million shares for application by eligible directors, employees and persons who have contributed to its success; and the remaining 73.7 million shares for private placement.
There will also be an offer sale of 10 million existing shares allocated for private placement to selected investors.
The company is expected to be listed in the second quarter of this year.
Founded in 1993, Southern Cable manufactures cables and wires for use in numerous industry sectors including power distribution, telecommunications, building and construction, infrastructure, manufacturing and processing industries including oil and gas processing and petrochemical plants.
It is also a registered supplier of cables and wires for industry leaders such as Tenaga Nasional Bhd, Telekom Malaysia Bhd, Sabah Electricity Sdn Bhd and Petronas.
Its factories in Kuala Ketil and Sungai Petani in Kedah have a total annual production capacity of 26,500 tonnes of aluminium and copper rods as well as 31,080km of cables and wires.
Southern Cable managing director Tung Eng Hai said the group plans to increase its product offerings to include high voltage thermal resistant aluminium conductor cables, industrial cables and automotive cables and wires.