PETALING JAYA: Bakery products manufacturer and distributor SDS Group Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) exercise for its ACE Market listing.
Under the agreement, M&A Securities will underwrite a total of 43.42 million new shares made available for the public and its eligible directors, employees and business associates/persons who contributed to the success of SDS Group.
SDS Group managing director Tan Kim Seng said the agreement reflects the underwriter’s confidence in the group and brings it a step closer towards listing on Bursa Malaysia.
“The listing exercise will enable us to tap into the equity capital market for future fund raising and to provide us the financial flexibility to pursue future growth opportunities as and when they arise,” he said in a statement today.
“By being a listed entity, we hope to further increase the brand visibility of ‘Top Baker’ and ‘Daily’s’ in the bakery industry as well as ‘SDS’ in the food and beverages industry in Malaysia,” he added.
SDS Group’s IPO exercise involves the issuance of 104.29 million new shares representing about 25.7% of the enlarged share capital.
Of the 104.29 million new shares, 20.29 million new shares will be made available to the Malaysian public via balloting; 23.13 million new shares for its eligible directors, employees and business associates/persons who have contributed to the success of the group while the remaining 60.87 million new shares are earmarked for private placement to selected investors.
Proceeds from the IPO will be used mainly to expand its business presence for both the wholesale and retail channels within the northern and central regions of Peninsular Malaysia respectively with the additional capacity from its new manufacturing plant in Seremban; general working capital; repayment of bank borrowings and to defray listing expenses for the IPO.
SDS Group is scheduled to be listed on the ACE Market by October 2019. M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
