Enproserve, KAF Investment sign IPO deal
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 initial public offering (IPO) en route to its listing on the ACE Market of Bursa Malaysia Securities Bhd.
In a statement yesterday, the mechanical and civil engineering service provider for the oil and gas (O&G) and petrochemical industries said the IPO comprises a public issue of 210 million new ordinary shares and an offer for sale of 105 million existing shares.
'Of the public issue shares, 139.18 million shares will be offered to selected investors via private placement, while 52.5 million shares will be made available to the Malaysian public by way of balloting.
'(Another) 18.32 million shares will be reserved for eligible directors, employees, and persons who have contributed to the company's success,' it said.
Under the deal, the investment bank will underwrite a total of 70.82 million public issue shares, comprising those offered to the Malaysian public via balloting and those reserved for eligible directors, employees, and individuals who have contributed to the group's success.
Enproserve group managing director Azman Yusof said the IPO is part of the company's plan to strengthen its operations in the O&G and petrochemical sectors.
He said the IPO is the next step in its expansion plan, providing capital to enhance its capacity and capabilities, thereby seizing growth opportunities.
'Our business model provides fundamental resilience and is robustly insulated from crude oil price volatility and the direct impact of United States 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 said.
KAF Investment Bank chief executive officer Rohaizad Ismail praised Enproserve's management, noting its experience in delivering engineering services to clients in the O&G and petrochemical sectors.
'We are honoured to play an instrumental role in Enproserve's efforts to tap into the capital market to energise its future and reach greater heights,' he said.
Furthermore, Enproserve said that, barring unforeseen circumstances, the group is targeting a listing in the third quarter of 2025.
KAF Investment Bank is the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise. — Bernama
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