Malaysian engineering group Serba Dinamik Holdings Bhd seeks to raise 584 million ringgit (US$130.29 million) in an IPO on the domestic stock exchange in February, its CEO said, in what would be the country's biggest listing in 19 months.
Serba, which provides engineering solutions to the oil and gas and power sectors, will use part of the IPO proceeds for cross-border acquisitions, focusing on companies with manufacturing capabilities, CEO Mohd Abdul Karim Abdullah said.
"We want to add on to our field services and offshore capabilities. [Through these acquisitions] we can also supply parts to the clients," he said.
The company will offer 389.4 million shares in the IPO with a retail price of 1.50 ringgit each, though the final offer price will be determined after a book-building exercise with institutional investors in January, Karim told Reuters in an interview.
Reuters had reported in August citing sources that the group was looking to raise about 600 million ringgit in an IPO.
Appetite for IPOs in Malaysia's market has shrunk on the back of a weak currency and volatile commodities markets that have dragged down economic growth in the country.
The largest Malaysian IPO this year was by Ranhill Holdings Bhd, for 386.8 million ringgit, through a reverse takeover, according to Reuters data.
Malakoff Corp. Bhd and Sunway Construction Group Bhd raised 2.74 billion ringgit and 550 million ringgit, respectively, in May and July 2015.
Karim said Serba continued to generate revenue and income growth despite operating in a low crude oil price environment.
"We are less susceptible to low oil prices as we are a provider of engineering solutions to the oil and gas and power generation industries with extensive international presence," he said, adding that Serba's customers and projects are primarily in the production and refining segments, which are more stable than the exploration segment of the oil and gas industry.
Outside of its home country, Serba also has businesses in Indonesia and the Middle East, among others.
RHB Investment Bank, Affin Hwang Investment Bank, AmInvestment Bank and Kenanga Investment Bank are bankers for the IPO.
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