KUALA LUMPUR: Advance Technologies Asia Bhd (ATA), a mechanical and electrical (M&E) engineering solutions provider, has signed an underwriting agreement with Malacca Securities Sdn Bhd ahead of its planned listing on the ACE Market of Bursa Malaysia Securities Bhd.
The initial public offering (IPO) comprises a public issue of 103.6 million new shares, representing approximately 22.82 per cent of the company’s enlarged issued share capital, alongside an offer for sale of 17.4 million existing shares, equivalent to 3.83 per cent.
Of the new shares, 22.7 million will be made available for application by the Malaysian public, while 4.54 million will be allocated to eligible persons.
The remaining 76.36 million new shares, together with all 17.4 million existing shares under the offer for sale, will be placed with selected investors.
ATA managing director Ong Keng Yong said the signing marked an important step towards its listing, which would provide a platform to support its next phase of growth.
“The listing will enable us to expand our project teams, invest in additional project equipment and strengthen our capabilities to take on more projects concurrently,” he said.
ATA also plans to develop a customised enterprise resource planning system to streamline and automate its operational workflows.
Ong said the group was positioning its operations and maintenance (O&M) services to benefit from growing demand for long-term maintenance as completed data centre facilities move into their operational phase.
This would provide the group with an opportunity to build a recurring revenue base alongside its M&E engineering project business.
Malacca Securities will act as the principal adviser, sponsor, underwriter and placement agent for ATA’s IPO.