Serba Dinamik offering 389.4m shares in IPO, eyes RM584m

PETALING JAYA: Oil and gas solutions provider Serba Dinamik is targeting to raise RM584.1 million from its initial public offering (IPO) on the local bourse.
The company said in a statement that its IPO involves a total offering of up to 389.4 million shares of 50 sen each, comprising an offer for sale of 118 million existing shares and a public issue of 271.4 million new shares.
Based on the retail price of RM1.50 per share, it is expected to raise RM407.1 million through the public issue, of which about 73.69% of the proceeds will be utilised for the expansion of the group’s business and operational facilities, 7.2% for working capital and 14.74% for the repayment of bank borrowings/financing.
Serba Dinamik, which is slated to be listed on Feb 8, 2017, is principally involved in the provision of operations and maintenance services, engineering, procurement, construction and commissioning works for the energy sector as well as ownership of small utility assets in Malaysia and Indonesia.
It has experienced rapid growth over the past three years, particularly in the Middle East, which contributed 47.3% to its total revenue for FY15.
Serba Dinamik managing director and CEO Datuk Mohd Abdul Karim Abdullah said in line with efforts to expand its asset ownership business model strategy, the company has two ongoing memorandums of understanding (MoUs) for the partnership agreement of developing small gas power plants and water utilities in East Kalimantan; and the joint development and ownership of a small gas power plant in Muaro Jambi, Sumatra, Indonesia.
“In addition, we are looking at opportunities to grow our business through investment and acquisition, but not limited to MRO (maintenance, repair and overhaul) service providers and small hydropower generation companies that can potentially add value to our existing business operations,” it added.