Solar District Cooling Group Berhad (SDCG) has officially launched its prospectus for its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad.
This IPO marks a significant milestone for SDCG, as it will provide the company with the necessary funds to expand its operations and strengthen its position in the market, particularly in the areas of Building Management Systems (BMS), solar thermal systems, and energy-saving services.
Solar District Cooling Group Berhad (SDCG) Overview
Solar District Cooling Group Berhad (SDCG) and its subsidiaries are leaders in providing and maintaining BMS, solar thermal systems, and energy-saving solutions.
Over the years, the Group has built a strong track record in enhancing energy efficiency across various sectors, including healthcare, hospitality, and industry. A key area of SDCG’s work involves energy performance services for companies that provide hospital support services to public hospitals.
These companies have subcontracted SDCG to handle energy efficiency projects, such as installing hybrid solar thermal hot water systems and retrofitting old fluorescent lighting with energy-saving LED lighting.
Through this IPO, SDCG aims to raise RM45.09 million by issuing 118.67 million shares at an issue price of RM0.38 per share. The funds raised will be allocated as follows:
- RM1.90 million for expanding the company’s headquarters in Kajang, Selangor.
- RM5.00 million for securing tender bonds and/or performance bonds for upcoming projects.
- RM18.70 million for purchasing materials for the BMS and solar thermal systems segments.
- RM12.67 million for general working capital.
- RM2.52 million for capital expenditure, including new equipment for BMS and solar thermal hot water systems, as well as purchasing ICT software and services.
- RM4.30 million for covering listing expenses.
The IPO application period opened today at 10:00 a.m. and will close on 6 September 2024. SDCG is set to be listed on the ACE Market on 19 September 2024.
At the IPO price of RM0.38 per share, the company’s market capitalisation is expected to reach RM161.05 million upon listing.
SDCG’s Managing Director, Mr. Edison Kong, expressed his excitement about this significant step in the company’s journey.
“This IPO is a major milestone for Solar District Cooling Group Berhad. Since our founding in 2008, we have been dedicated to innovation, efficiency, and sustainability. Our focus on delivering top-notch Building Management Systems and solar thermal technologies has allowed us to enhance energy efficiency and promote environmental stewardship.
With this listing, we are eager to embrace new opportunities and set new benchmarks in our industry. I am truly grateful to our team, clients, and partners for their unwavering support.”
Mr. Chris Lai Ther Wei, Head of Capital Markets at Mercury Securities Sdn. Bhd., congratulated SDCG on this achievement.
“We would like to congratulate the Board and the entire team of Solar District Cooling Group Berhad on the successful launch of your IPO prospectus. Well done on reaching another milestone in your corporate journey.“
Mercury Securities Sdn. Bhd. serves as the Principal Adviser, Sponsor, Sole Underwriter, and Sole Placement Agent for SDCG’s IPO.
For more information, visit www.sdc.my
