SOLAR DISTRICT COOLING GROUP BERHAD AIMS TO RAISE RM45.09 MILLION FROM ACE MARKET IPO

Well-Positioned for Growth with Building Management Systems and Solar Thermal Systems Solutions

KUALA LUMPUR, 28 AUGUST 2024 – Solar District Cooling Group Berhad ("SDCG") is pleased to announce the launch of its prospectus for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad ("Bursa Securities"). The IPO represents a significant milestone in the company’s growth trajectory, allowing SDCG to expand its operations and strengthen its market position in building management system (“BMS”) and solar thermal systems and energy saving services.

SDCG and its subsidiaries (“Group”) are principally involved in the provision and maintenance of BMS, solar thermal systems and energy saving services. The Group has a proven track record of enhancing energy efficiency across healthcare, hospitality and industrial sectors. SDCG Group is involved in providing energy performance services to the concession companies that are providing hospital support services for public hospitals. The concessionaires engaged SDCG Group as a subcontractor to carry out energy efficiency work related to the installation of hybrid solar thermal hot water systems, and for some contracts, retrofitting of fluorescent lighting of LED lighting.

Following the IPO exercise, SDCG is expected to raise RM45.09 million via the issuance of 118.67 million shares at the issue price of RM0.38 per share. The proceeds will be allocated in the following manner:

·        RM1.90 million for the expansion of headquarters in Kajang, Selangor;

·        RM5.00 million for tender bonds and/or performance bonds for future projects;

·        RM18.70 million for the purchase of materials for BMS segment, and solar thermal systems and energy-saving services segment;

·        RM12.67 million for general working capital;

·        RM2.52 million for capital expenditure, including new equipment for BMS, installation and maintenance of solar thermal hot water systems, and purchasing ICT software and services; and

·        RM4.30 million for estimated listing expenses.

Applications for the IPO will open at 10:00 a.m. today, following the prospectus launch, and will close on 6 September 2024. SDCG is scheduled to list on the ACE Market on 19 September 2024. At the IPO price of RM0.38 per share, the market capitalisation of the company upon listing will be RM161.05 million.

Managing Director of SDCG, Mr. Edison Kong commented, "This IPO represents a significant milestone in Solar District Cooling Group Berhad’s journey. Since 2008, we have been driven by a commitment to innovation, efficiency, and sustainability. Our focus on delivering Building Management Systems and solar thermal technologies has helped us enhance energy efficiency and promote environmental stewardship. With this listing, we look forward to embracing new opportunities and setting new standards in our business. I am deeply grateful to our team, clients, and partners for their continued trust and support.”

Head of Capital Markets of Mercury Securities Sdn Bhd, Mr. Chris Lai Ther Wei stated, “We would like to congratulate the Board and the entire team of Solar District Cooling Group Berhad on the successful launch of your IPO prospectus. Well done for reaching another milestone in your corporate journey.”

Mercury Securities Sdn. Bhd. is the Principal Adviser, Sponsor, Sole Underwriter, and Sole Placement Agent for SDCG.