After the listing, a dividend policy to return a minimum of 30% of its earnings to shareholders will be implemented
Steel Hawk Bhd aims to raise RM3.2 million ($0.77 million) from its initial public offering (IPO) on Malaysia’s LEAP Market.
Launching its information memorandum, the group said the proceeds are intended to provide additional financial flexibility to support Steel Hawk’s growth strategy by, among others, setting up two fire-rated door assembly lines and construction of a mud cooler system.
The listing exercise involves placing out 16 million ordinary shares, equivalent to 10% of its enlarged issue share capital, to selected sophisticated investors at 20 sen per issue share.
The company said that apart from the 16 million new shares to sophisticated investors, the remaining 144 million shares are held by the promoters.
After the listing, a dividend policy to return a minimum of 30% of its earnings to shareholders will be implemented.
Steel Hawk is primarily involved in the provision of engineering, procurement, construction, and commissioning (EPCC) services for chemical injection skids and improvement or maintenance of topside oil and gas (O&G) facilities.
Steel Hawk group executive director and chief executive officer (CEO) Datuk Sharman Kristy Michael said as a new entrant to the capital market, the group will use the platform to accelerate growth to realise its plan in optimising project outcomes and deliver desirable results to its clients.
Moving forward, we aim to further improve our efficiencies and secure better profit margins by setting up two fire-rated door accessories assembly lines and own a mud cooler system with our listing proceeds, he said.
He said: We also plan to expand our footprint in the overseas market, primarily into Brunei and Indonesia, in the medium term as we plan to appoint distributors and suppliers in these two countries and leverage their networks to supply our products to the O&G industry.
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