SDCG’s IPO oversubscribed by 144.08 times, making the highest subscription value based on the total applicants of any IPO this year

Strong Investors’ Enthusiasm Reflects Confidence in the Group’s Building Management System and Solar Thermal System Solution

KUALA LUMPUR, 10 SEPTEMBER 2024 – Solar District Cooling Group Berhad (“SDCG”) is pleased to announce that its Initial Public Offering (“IPO”) on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) for the Malaysian public has been oversubscribed by 144.08 times.

SDCG and its subsidiaries (“Group”) are principally involved in the provision and maintenance of building management system (“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.

SDCG’s IPO comprises the issuance of 118.67 million new ordinary shares (“new Shares”) with the following allocation:

·         21,192,000 new Shares available for application by the Malaysian public via balloting;

·         21,192,000 new Shares available for application by eligible persons; and

·         76,286,000 new Shares by way of private placement to selected investors.

SDCG received a total of 31,678 applications for 3,074,469,300 new Shares worth RM 1,168,298,334 from the Malaysian public, representing an oversubscription rate of 144.08 times. The Bumiputera category saw 15,307 applications for 1,356,970,100 new Shares, with an oversubscription rate of 127.06 times. The Public category recorded 16,371 applications for 1,717,499,200 new Shares, indicating an oversubscription rate of 161.09 times.

Meanwhile, the total of 21,192,000 new Shares available for application by the Eligible Persons were fully subscribed.

Under the private placement to selected investors comprising 76,286,000 new Shares, the Placement Agent has confirmed that the placement portion has been fully covered.

Non-Independent Managing Director of SDCG, Mr. Edison Kong expressed his gratitude: “We are deeply honoured by the overwhelming response to our IPO. The strong investor interest is a clear endorsement of our strategic direction and the growth potential in BMS and energy performance services sector. We appreciate the trust that investors have placed in us, and we are committed to using this support to drive our expansion and innovation efforts.”

Edison added, “The positive reception from investors is both humbling and motivating. This strong show of confidence encourages us to continue enhancing our capabilities and expanding our footprint in the BMS and energy performance services sector. We remain dedicated to delivering high-quality building energy solutions and creating lasting value for our stakeholders.”

Managing Director of Mercury Securities Sdn Bhd, Mr. Chew Sing Guan, remarked, “The enthusiastic response to SDCG’s IPO is a strong testament to the market’s confidence in the Group’s prospects. We are proud to have played a role in bringing SDCG to this significant milestone. Moving forward, we are confident that with the proceeds raised, SDCG is well-equipped to capitalise on emerging opportunities.

Mercury Securities Sdn. Bhd. is the Principal Adviser, Sponsor, Underwriter, and Placement Agent for this IPO exercise.

Solar District Cooling Group Berhad is set to debut on the ACE Market of Bursa Securities on 19 September 2024.