ACO inks underwriting agreement for IPO scheduled in March this year

By BERNAMA / Graphic By TMR

ACO Group Bhd yesterday inked an underwriting agreement with Alliance Investment Bank Bhd for its IPO exercise on the Bursa Malaysia Securities Bhd’s ACE Market scheduled in March this year.

ACO Group’s IPO exercise entails a public issue of up to 58 million new shares and an offer for sale of up to 25 million existing shares by way of a private placement to identified investors.

Group MD Tang Pee Tee @ Tan Chang Kim said proceeds raised from the public issue will be utilised to strengthen its market share by expanding further across the country and enhancing the service experience of customers.

“In executing our expansion plan, we aim to set up new sales outlets, distribution centres, lighting concept stores and a new head office; purchase new trucks; and upgrade our information technology systems, as well as expand our range of third-party and own brand electrical products and accessories,” he said in a statement yesterday.

Of the 58 million new issuances which represent 19.3% of the group’s enlarged issued capital upon listing, 15 million shares will be allocated to the Malaysian public via balloting (with at least 7.5 million shares [50%] set aside for Bumiputera investors).

It said nine million shares will be allocated to eligible directors, employees and persons who have contributed to the success of the group and four million shares to identified investors by way of a private placement.

The remaining 30 million shares will be placed out to Bumiputera investors approved by the International Trade and Industry Ministry.

ACO Group is the authorised distributor for 10 brands of electrical products and accessories including Schneider Electric, KDK, Hager, Omron, ABB, Panasonic, Ledvance, Maxguard, Siemens and Yaskawa.

The group distributes approximately 85 third-party brands of electrical products and accessories. — Bernama