A firm specializing in solar photovoltaics (PV) and ground and lightning protection (ELP), Pekat Group Bhd aims to be listed on the ACE Market, Bursa Malaysia.
According to the company's statement, the firm explained that following the initial public offering (IPO) move, Pekat had signed an underwriting agreement with M&A Securities Sdn Bhd yesterday.
According to its managing director, Chin Soo Mau, the signing of the agreement not only showed confidence in Pekat but also brought the company closer to listing on the local stock exchange.
"This listing will enable us to leverage on the equity capital market to raise funds to build new headquarters and operating facilities as we expand our PV and ELP solar business," he said in a statement as reported by Bernama.
Soo Mau added that the proceeds of the IPO will generally be used to expand Pekat's operations in an effort to capitalize on the future growth of the solar industry, thus helping the company expand its capabilities.
The IPO involved the issuance of 138.67 million new shares in Pekat representing 21.5% of the total issued share capital.
Under the agreement, M&A Securities underwrites a total of 48.37 million new shares made available to the public of the country and its eligible directors, employees and individuals who have contributed to the company's success.
The remaining 90.30 million new shares will be offered to Bumiputera investors approved by the Ministry of International Trade and Industry (MITI) as well as selected investors.
Pekat's major shareholders include Hextar Holdings Sdn Bhd which is a major shareholder of Hextar Global Bhd which is listed on the Main Market, Bursa Malaysia.
