MNHB to boost RM17.2mil by way of ACE Market itemizing

MN Holdings Bhd (MNHB) intends to boost RM17.2mil via its itemizing on the ACE Market of Bursa Malaysia for enterprise enlargement.

In accordance with MNHB, its operational assets rely largely on the supply of its equipment and tools.

The underground utilities and substation engineering specialist plans to make use of RM5.84mil, or 34%, of the proceeds raised from the preliminary public providing (IPO) to buy numerous equipment and tools over the subsequent two years to assist its enterprise enlargement.

In an interview, govt director of MNHB Datuk Clement Toh stated the itemizing would elevate the corporate to a much bigger platform, and the acquisition of equipment will permit the corporate to take up bigger tasks.

The corporate stated RM4.33mil, or 25.2%, of the proceeds, shall be used for common working capital to assist new and current tasks.

Managing director of MNHB Loy Siong Hay stated the corporate’s working capital necessities are anticipated to extend consistent with the expansion in its enterprise operations.

The rest of the proceeds shall be used for the compensation of financial institution borrowings and estimated itemizing bills amounting to RM4mil and RM3mil, 23.3% and 17.5% of the proceeds, respectively.

Talking of the corporate’s power, Loy stated the synergy between each its subsidiaries, MN Energy Transmission Sdn Bhd and Mutu Nusantara Sdn Bhd, would permit the corporate to offer a one-stop full answer for its clients.

The corporate had an order guide of RM172.2mil as at March 9, 2022 which is believed to be sufficient to maintain it busy for the subsequent two years, in accordance with Toh. The whole order guide consists of RM135.4mil from the underground utilities engineering phase and RM36.8mil from the substation engineering phase.

“MNHB is the unique accomplice to Rentak Segar Sdn Bhd and Impiana Mahir Sdn Bhd for underground utilities engineering companies and options tasks,” it stated. “Rentak Segar and Impiana Mahir are Tenaga Nasional Bhd-approved major contractors,” it added.

As at March 9, MNHB had accomplished 375 contracts, with a cumulative worth of RM261mil. It has 174 ongoing tasks which have a contract worth of RM258mil, of which RM126mil is unbilled.

Moreover, the corporate believes the outlook for the facility infrastructure utilities market in Malaysia is brilliant.

Primarily based on a projection by the United Nations division of financial and social affairs, Malaysia’s inhabitants will improve inside three a long time. Together with urbanisation, this can profit the facility business.

Primarily based on the capital expenditure (capex) incurred for recurring electrical energy era, transmission and distribution, there’s a regular progress within the energy utilities infrastructure market in Malaysia.

That business is claimed to have a compounded annual progress fee (CAGR) of 12.4%. Capex rose from RM5.7bil in 2016 to RM10.3bil in Malaysia in 2021.

For Peninsular Malaysia and Sabah, the CAGR for recurring electrical energy era, transmission and distribution is 6.1%, with capex rising from RM5.4bil in 2016 to RM7.3bil in 2021.

MNHB secured a income of RM115.2mil for the availability of underground utilities engineering companies and options, in addition to substation engineering companies and options in its monetary yr 2021.

The corporate, based mostly on these companies, has a market share of 1.1% for the capex incurred in Malaysia.

That market share for MNHB rose to 1.6% for the Peninsular Malaysia and Sabah markets.

Between 2022 and 2024, an estimated RM20bil shall be allotted as capex for recurring electrical energy era, transmission and distribution in Peninsular Malaysia and Sabah. From the RM20bil allocation, about RM11.8bil shall be put aside for capex in 2022.

MNHB sees this as a market alternative, in accordance with govt director of MNHB Dang Siong Diang.

Beneath the itemizing train, MNHB is issuing 81.75 million new shares at a difficulty value of 21 sen per share, representing 20% ​​of its enlarged share capital of 408.75 million.

Of the 81.75 million new shares, 20.44 million shares shall be made out there to the Malaysian public, 8.18 million shares for its eligible administrators and staff, 51.09 million shares reserved for a non-public placement to bumiputra traders and a couple of.04 million shares shall be positioned to chose traders .

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO train.

In the meantime, there will even be a proposal of sale for 40.88 million shares to chose traders by means of personal placement. Primarily based on the enlarged share capital, MNHB is predicted to have a market capitalization of RM85.84mil.

The IPO is open for subscription from April 8 till April 15. The corporate’s itemizing on the ACE Market is tentatively scheduled for April 28, 2022.


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