by NUR HAZIQAH A MALEK / pic credit: pekat.com.my
PEKAT Group Bhd’s total market capitalisation is estimated to be around RM206.39 million based on its IPO price of 32 sen a share and its enlarged share capital of 644.97 million shares upon listing on the ACE Market on June 23.
In a filing to Bursa Malaysia yesterday, the group noted it plans to raise RM44.37 million in proceeds from the IPO.
Pekat Group MD Chin Soo Mau said 40.6% of the proceeds or RM18 million will be used for the construction of the new head office and operational facility.
“Some RM12.7 million will be used for working capital and RM10 million for repayment of bank borrowings,” he said at the prospectus launch yesterday.
The construction of its new head office and operational facility will be made to replace the company’s existing facilities.
The RM18 million cost is broken down into RM9.1 million worth of construction works, RM2.7 million worth of mechanical and electrical works and RM1.73 million for infrastructural works. The remainder will go to professional fees, authority and utilities, interior fit-out and loose furniture, as well as contingencies.
Chin said the group plans to transfer the equipment, including hardware and related software, from the existing office to the new head office and operational facility.
“We expect to incur a cost amounting to RM200,000 for the purchase of additional monitors for our central monitoring station, projectors and video conferencing systems for the training centre, as well as laptops and office equipment.
“The cost will be funded via internally generated funds,” he said.
The proposed construction will have a total built-up area of 114,252 sq ft, an integrated facility with all of the company’s facilities under one roof.
“It will serve as a landmark for the solar photovoltaic business facility, as well as an integrated management, monitoring and evaluation platform when completed and begin operations in December 2023,” he said.
“Some PV and earthing and lightning protection projects require tender bonds and performance bonds, which are typically fixed values, but differ based on the tender.
“This causes part of our capital to be tied up throughout the project period, and affects the group’s liquidity,” he said.
The group’s IPO in conjunction with its listing will see a public issue of 138.67 million new ordinary shares, 32.25 million new shares for application by the public, 16.12 million new shares for directors and employees, as well as 90.3 million new shares for private placement to selected investors.
The group will offer 32.35 million existing shares for private placement at an offer price of 32 sen per share.