Tag: Solar District Cooling Group Berhad

Solar District Cooling Group Berhad (“SDCG”) is pleased to announce the launch of its prospectus for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). The IPO represents a significant milestone in the company’s growth trajectory, allowing SDCG to expand its operations and strengthen its market position in building management system (“BMS”) and solar thermal systems and energy saving services.

1. Mr. Chris Lai Ther Wei, Head of Capital Markets, Mercury Securities Sdn. Bhd.
2. Mr. Chew Sing Guan, Managing Director, Mercury Securities Sdn. Bhd.
3. Mr. Edison Kong, Managing Director, Solar District Cooling Group Berhad
4. Mdm. Eileen Liuk, Executive Director, Solar District Cooling Group Berhad[L-R]

SDCG and its subsidiaries (“Group”) are principally involved in the provision and maintenance of BMS, solar thermal systems and energy saving services. The Group has a proven track record of enhancing energy efficiency across healthcare, hospitality and industrial sectors. SDCG Group is involved in providing energy performance services to the concession companies that are providing hospital support services for public hospitals. The concessionaires engaged SDCG Group as a subcontractor to carry out energy efficiency work related to the installation of hybrid solar thermal hot water systems, and for some contracts, retrofitting of fluorescent lighting of LED lighting.

1. Mr. Wong Kei Fai, Independent Non-Executive Director, Solar District Cooling Group Berhad
2. Ms. Wong Poh May, Independent Non-Executive Director, Solar District Cooling Group Berhad
3. Mr. Chris Lai Ther Wei, Head of Capital Markets, Mercury Securities Sdn. Bhd.
4. Mr. Chew Sing Guan, Managing Director, Mercury Securities Sdn. Bhd.
5. Mr. Edison Kong, Managing Director, Solar District Cooling Group Berhad
6. Mdm. Eileen Liuk, Executive Director, Solar District Cooling Group Berhad
7. Ir. Dr. Khairul Azmy Bin Kamaluddin, Independent Non-Executive Chairman, Solar District Cooling Group Berhad
8. YM Raja Nor Azlina Binti Raja Azhar, Independent Non-Executive Director, Solar District Cooling Group Berhad

Following the IPO exercise, SDCG is expected to raise RM45.09 million via the issuance of 118.67 million shares at the issue price of RM0.38 per share. The proceeds will be allocated in the following manner:

• RM1.90 million for the expansion of headquarters in Kajang, Selangor; 
• RM5.00 million for tender bonds and/or performance bonds for future projects;
• RM18.70 million for the purchase of materials for BMS segment, and solar thermal systems and energy-saving services segment;
• RM12.67 million for general working capital; 
• RM2.52 million for capital expenditure, including new equipment for BMS, installation and maintenance of solar thermal hot water systems, and purchasing ICT software and services; and
• RM4.30 million for estimated listing expenses.

Applications for the IPO will open at 10:00 a.m. today, following the prospectus launch, and will close on 6 September 2024. SDCG is scheduled to list on the ACE Market on 19 September 2024. At the IPO price of RM0.38 per share, the market capitalisation of the company upon listing will be RM161.05 million.

Managing Director of SDCG, Mr. Edison Kong commented, “This IPO represents a significant milestone in Solar District Cooling Group Berhad’s journey. Since 2008, we have been driven by a commitment to innovation, efficiency, and sustainability. Our focus on delivering Building Management Systems and solar thermal technologies has helped us enhance energy efficiency and promote environmental stewardship. With this listing, we look forward to embracing new opportunities and setting new standards in our business. I am deeply grateful to our team, clients, and partners for their continued trust and support.”

Head of Capital Markets of Mercury Securities Sdn Bhd, Mr. Chris Lai Ther Wei stated, “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 for reaching another milestone in your corporate journey.”

Mercury Securities Sdn. Bhd. is the Principal Adviser, Sponsor, Sole Underwriter, and Sole Placement Agent for SDCG.

Solar District Cooling Group Berhad (“SDCG”) is pleased to announce that it has entered into an underwriting agreement with Mercury Securities Sdn Bhd (“Mercury Securities”) today for its upcoming initial public offering (“IPO”) on the ACE Market of Bursa Malaysia Securities Berhad.

SDCG and its subsidiaries (“Group”) are principally involved in the provision and maintenance of building management systems (BMS), solar thermal solutions and energy saving services. The Group has a proven track record of enhancing energy efficiency across various sectors and strives to establish benchmarks in energy management and cost efficiency.The IPO involves the public issue of 118,670,000 new ordinary shares (“Issue Shares”), representing 28.00% of SDCG’s enlarged issued share capital of 423,822,460 ordinary shares upon its listing.The Issue Shares will be allocated in the following manner:Malaysian Public: 21,192,000 Issue Shares representing 5.00% of the enlarged issued share capital for application by the Malaysian public, with 50.00% set aside for Bumiputera investors.Eligible Persons: 21,192,000 Issue Shares representing 5.00% of the enlarged issued share capital for application by eligible directors, employees, and persons who have contributed to the Group’s success.Selected Investors: 76,286,000 Issue Shares representing 18.00% of the enlarged issued share capital made available by way of private placement to selected investors.Mercury Securities will underwrite all the 42,384,000 Issue Shares made available for application by the Malaysian public and eligible persons.Mr. Edison Kong, Managing Director of SDCG, expressed his enthusiasm for the IPO, stating, “Our listing will enhance our visibility and reputation in the market and enable our directors, employees, business partners, and public investors to participate in the growth and continued expansion of our business, increasing shareholder value. We would like to express our sincere gratitude to Mercury Securities for their support and confidence in our Group.”He added, “This corporate milestone will help scale our Group to new heights by tapping new opportunities and responding to the evolving needs of our customers and market trends. We remain focused on providing innovative solutions that create value for our customers, striving to exceed their expectations.Mr. Chew Sing Guan, Managing Director of Mercury Securities Sdn Bhd said, “We are delighted to be the Principal Adviser, Sponsor, Sole Underwriter, and Sole Placement Agent for SDCG and to play a part in their new corporate journey as a listed company on the ACE Market of Bursa Malaysia Securities Berhad. The listing will enable SDCG to tap into the capital market for its growth and expansion plans in the future.”ABOUT SOLAR DISTRICT COOLING GROUP BERHADSolar District Cooling Group Berhad (SDCG) and its subsidiaries (the “Group”) is an established services provider of energy-efficient building management and solar thermal systems in Malaysia. The Group specialises in the design, installation, and maintenance of BMS and solar thermal solutions, serving a diverse range of sectors including commercial, institutional, and industrial properties. With a commitment to sustainability and innovation, SDCG has earned a reputation for excellence in the building management system and solar thermal industries.For more information, visit www.sdc.myIssued By: Swan Consultancy Sdn. Bhd. on behalf of Solar District Cooling Group BerhadFor more information, please contact:Jazmin WanTel: +60 17-289 4110Email: j.wan@swanconsultancy.bizWilliam YeoTel: +60 16-213 2103Email: w.yeo@swanconsultancy.biz