ACE Market-bound Enproserve inks underwriting deal with KAF Investment Bank
From left: Mohd Nizam Yaakub, CEO, Enproserve Group; Azman Yusof, group managing director; Datuk Hashim Majid, independent non-executive chairman; Rohaizad Ismail, CEO, KAF Investment Bank; and Azmi Hariss Ibrahim, corporate finance director
KUALA LUMPUR: Enproserve Group Bhd has signed an underwriting agreement with KAF Investment Bank Bhd for its proposed listing on the ACE Market of Bursa Malaysia.
Under the terms of the agreement, KAF Investment Bank will underwrite a total of 70.82 million public issue shares, wich will be made available to the Malaysian public via balloting and to eligible directors, employees, and persons who have contributed to the success of the group.
Enproserve, which is targeting a listing in the third quarter of 2025, is a mechanical and civil engineering service provider for the oil and gas (O&G) and petrochemical industries.
It specialises in plant maintenance and turnaround (PMT) and engineering, procurement, construction, and commissioning (EPCC) services and rental of heavy lifting equipment and vehicles mainly for the downstream O&G and petrochemical industries in Malaysia, with involvement also in the upstream and midstream sectors.
According to group managing director Azman Yusof, the company's business model provides fundamental resilience and is insulated from crude oil price volatility and the direct impact of US tariffs.
"The funds raised will be mostly used for procuring new machinery, equipment, and vehicles, which will fortify our capabilities to take on larger jobs amid increasing market demand,' he added in a statement.
The company's IPO entails a public issue of 210 million new shares and an offer for sale of 105 million existing shares.
Of the 210 million public issue shares, 139.18 million will be allocated to selected investors via private placement.
Another 52.5 million public issue shares will be made available via application by the Malaysian public by way of balloting, while 18.32 million public issue shares will be reserved for application by the eligible directors, employees and persons who have contributed to the success of Enproserve.
KAF Investment Bank is the principal adviser, sponsor, underwriter and placement agent for the Group's flotation exercise.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
3 hours ago
- New Straits Times
MONEY THOUGHTS: Of squeezes and substitutions
CAN you sense the snowballing righteous indignation of regular people at the arrogance and disrespect shown to them by political leaders — far and near? Globally, Donald Trump's tariffs on the whole world have angered entire continents, even as some cautious national leaders are taking a placatory stance toward him. Note: Even disregarding trade volumes for the moment, the sizable dip in the number of foreign students enrolling in American universities, and the cratering of tourist visits Stateside both bear testimony to one unsurprising truth: If you don't want me, I have options! While not true under monopolistic or monopsonistic circumstances, it is true most of the time. (In a monopoly, there is only one seller or provider of a good or service; so, a monopolistic vendor can raise prices to the roof. Conversely, in a monopsony, there is only one buyer, again, of a good or service; therefore, a monopsonistic buyer can — and almost always will — slam prices to the floor on a take-it-or-leave-it basis.) Thankfully, we — people and countries — have choices. So, while Trump considers the United States of America the economic centre of Earth, billions of people are waking up to the truth that 95.8 per cent of humanity lives outside America, and about 73 per cent of global GDP (gross domestic product) is generated within the other 192 member countries of the United Nations (and the two permanent observers, the Vatican and beleaguered Palestine). In most buy-and-sell transactions worldwide, the high-handed arrogance of entitled monopolists and monopsonists cannot gain traction because of one word: CHOICE. CHOICE AND SUBSTITUTION Fused onto the word "choice" like a semantic Siamese twin is the robust economic concept of "substitution", which applies to current American economic animosity toward most other countries, and also to the growing hordes of frustrated Malaysian consumers and business owners. People have choices when substitutions abound. You exercise this proactive power each time you dine out and scan menu items. If you see two meal options, which appeal equally to your growling stomach, you are likely to select the cheaper option. When extending the selection of options made from among several (or, better yet, many) economic choices, we humans usually revert to the common sense behaviour of rejecting those who reject us and instead seeking out those who are warm, friendly and accepting. For an extreme recent example, consider the sheer idiocy of the Trump administration barring eager, supersmart non-Americans from entering Harvard University. China's immediate (and massively logical) response was to welcome those brainiacs with open arms. Every country's future wealth is more dependent upon the scientific, technological and business acumen of a minority of talented people — regardless of where they were born — than upon the masses who believe mere birthright dubiously grants them some form of superiority. I suspect if America continues down this path of rejecting those who come from outside its shores, in less than a decade, other countries, led by wiser leaders, will grow at its expense. However, the proven self-correcting mechanisms in the American system of governance will probably permit the pendulum to swing back toward sanity in a few years. So, the advantage those of us who invest globally have is a vast range of choices for the allocation of our hard-earned, hard-won and hard-retained capital. Within our, ideally, globally diversified portfolios we should observe and think before acting. ECONOMIC RE-ENGINEERING Toward that end, the idea of substitution is readily understood, both within the SIPs (or savings and investment portfolios) we build lifelong wealth with, and within the narrow parameters of analysing the impact hiking a small country like Malaysia's sales and service (SST) rates can have. In case you missed it, there was an announcement that the Malaysian government will rake in an additional RM10 billion from its most recent hikes in certain SST rates. Time will tell if that durian runtuh -type harvest for government coffers materialises. You see, on the surface, having a competent, clean government that collects more tax revenue and which channels it toward enhancing the country's healthcare and education systems is laudable. However, that targeted extra RM10 billion flowing to the government is RM10 billion flowing OUT from the collective pockets of all Malaysians. It's been reiterated that 85 per cent of Malaysians won't be hurt too much, while the highest earning 15 per cent of Malaysian households shouldn't begrudge this economic re-engineering. Yet, in truth, dissatisfaction is rising like a king tide across all slices of the so-called privileged T15 — the 15 per cent of top-earning Malaysians. And the source of that dissatisfaction — increased taxes — will morph consumption habits across all socio-economic layers of this country. When we-the-people feel that disengaged authorities are squeezing us, we will respond rationally, logically, and decisively — to protect the economic well-being of those who matter most to us: our immediate families. Similarly, but on a larger scale, countries other than the US, especially across Asia, will evolve and grow new supply chains that exclude and sideline offensive rogue nations intent on rejecting or hurting them. Consider that as you contemplate your key investment choices over the next three-and-a-half years. © 2025 Rajen Devadason
The Star
3 hours ago
- The Star
Call to review SST for SMEs
PETALING JAYA: The revision of the Sales and Services Tax (SST) thresholds for rental and leasing services represents a step forward, but industry experts argue that without accompanying structural reforms, Malaysian small businesses will continue to struggle in the challenging economic climate. SME Association of Malaysia president Dr Chin Chee Seong said that more should be done to address challenges faced by small businesses. ALSO READ: Traders brace for cost hikes, weaker spending 'The current revision to the SST threshold, while helpful to a small segment, does not fully address the systemic pressures MSMEs face,' he said. Chin pointed out that among the additional support to small businesses are tax policy recalibration, reintroduction of input tax credit or tax offset mechanism and stronger digitalisation and compliance support. He explained that recalibrating tax policy based on tenant size would shield MSMEs from burdensome tax costs, particularly in high-rent urban areas. 'The vast majority of landlords in urban centres including commercial building owners, mall operators and property investment companies easily exceed the RM1mil threshold. 'As such, most MSMEs renting from these landlords will still be charged the 8% service tax, resulting in an unavoidable increase in their operational costs,' he said, suggesting the threshold should be set at RM2mil or higher. On Friday, the Finance Ministry announced revisions on the expanded SST which is due to begin on July 1. Among others, the annual sales threshold for mandatory Service Tax registration has been raised from RM500,000 to RM1mil for leasing, rental, and financial services. Chin also urged the government to consider the reinstatement of a more structured tax framework, citing Goods and Services Tax (GST), or a hybrid model that could reduce double taxation. 'Many MSMEs lack digital tools or accounting systems to manage SST compliance and the incoming e-invoicing mandate. 'Expand access to subsidised point-of-sales systems, accounting software, and e-invoicing tools under programmes like MSME Digital Grant or Penjana,' he said when explaining about the need for digital transformation for MSMEs. 'If the government is serious about enabling MSMEs, the backbone of Malaysia's economy, to remain competitive and resilient, it must go beyond symbolic tax threshold adjustments. 'What is required is structural reform, practical support, and policy empathy that takes into account the fragile business environment, rising operating costs, and the need for long-term sustainability,' added Chin. Federation of Malaysian Business Associations vice-chairman Nivas Ragavan agreed with the need for a higher threshold. While the RM1mil threshold was positive and meaningful for MSMEs, he cited factors such as high operational costs in the urban areas. As such, he said there should be a further increase to RM1.5mil or introduce a tiered threshold according to sectors. This was to provide more room for MSMEs to scale before being burdened with tax obligations, he said. Nevertheless, Nivas agreed that the revision would allow the sector to keep prices more affordable for consumers. 'It would also allow MSMEs to retain margins or reinvest in business development and reduce administrative distractions so they can focus on their core business,' he said. As part of further support to small businesses, Nivas suggested that there should be a simplified taxation system for MSMEs, like introducing presumptive tax systems.
The Star
3 hours ago
- The Star
Traders brace for cost hikes, weaker spending
JOHOR BARU: The expanded Sales and Services Tax (SST), which comes into effect on July 1, will likely impact local traders and consumers including those coming from Singapore, say Johor business groups. Johor Indian Petty Traders and Small Business Association chairman D. Ravindran said many of their 400-odd members have already voiced their concerns over the SST expansion. ALSO READ: Call to review SST for SMEs 'We are already struggling with high costs, so the timing (of the expanded tax) has come at the wrong time. 'Many of us are already paying high rental fees especially those who are operating within the Johor Baru area,' he said when contacted. Ravindran said that the SST expansion would lead to lower spending power of Malaysian consumers. Although Singaporeans prefer to cross the Causeway and Second Link to shop and eat in Johor, he said that 'as a local business, we cannot just depend solely on Singaporean customers or those earning Singapore dollars'. 'We need support from Malaysian consumers, too,' he said. The Finance Ministry had announced that the reviewed and expanded SST, as stated in Budget 2025, would take effect on July 1. The measure aims to strengthen the country's fiscal position by increasing revenue and broadening the tax base. South Johor SME Association adviser Teh Kee Sin said that the SST expansion would lead to a significant impact on Johor Baru's economy, especially for those involved in retail, food and beverage and services. 'Surely the SST revision will increase the prices of raw materials. This would add on to the selling price,' he said. He said that consumers, even those earning Singapore dollars, are sensitive to price increases. Johor Baru Bazaar Karat Development and Welfare Association president Fuad Rahmat said the expected increase in SST rate would undoubtedly have an impact on the ecosystem of small traders, such as those operating at the Bazar Karat here. 'The purchasing power of local visitors as well as those from Singapore has been declining in recent times. 'With SST, prices may go up. The customer may not know that part of the cost is due to tax,' he said. Furthermore, he said that suppliers or distributors could raise prices arbitrarily on the pretext of taxation. Fuad said he was concerned that small traders like them do not have the bargaining power that large companies do. 'When suppliers raise their prices, we have little choice but to absorb the higher costs or pass them on to our customers. 'This, in turn, will make visitors more cautious about spending,' he said. He urged the Domestic Trade and Cost of Living Ministry to tighten enforcement against suppliers who take advantage on the situation by raising prices without justification. Fuad also said that the focus should not be solely on traders, but also on the supply chain, which could be the real source of these price hikes. 'As a community of micro and informal traders, I hope the government will consider providing special assistance, exemptions, or targeted subsidies, for this group, so we can continue to survive and contribute to the local economy, while helping to draw more visitors to commercial centres like Bazar Karat JB,' he said.
