Listing Detail:
Listing Sought: ACE Market
Issue Price: RM0.50
Par Value: RM 0.10

Dates:
Offer Period Open: 29 Jun 2016
Offer Period Close: 22 Jul 2016
Tentative listing date: 10 Aug 2016

Number of shares:
Public Issue: 63,816,200
Offer for Sale: 31,908,100
Private Placement: 39,885,200

Stock Code: HSSEB

Official Announcement

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH THE LISTING OF HSS ENGINEERS BERHAD ("HEB") ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING:-

(I) PUBLIC ISSUE OF 63,816,200 NEW ORDINARY SHARES OF RM0.10 EACH IN HEB ("SHARES") ALLOCATED IN THE FOLLOWING MANNER:-

(A) 15,954,000 NEW SHARES AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;

(B) 7,977,000 NEW SHARES AVAILABLE FOR APPLICATION BY THE ELIGIBLE DIRECTORS, EMPLOYEES AND BUSINESS ASSOCIATES/PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF HEB; AND

(C) 39,885,200 NEW SHARES BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS; AND

(II) OFFER FOR SALE OF 31,908,100 SHARES MADE AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO SELECTED BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY,

AT AN ISSUE/OFFER PRICE OF RM0.50 PER SHARE, PAYABLE IN FULL UPON APPLICATION.

Company Overview

HSS Engineers Berhad, an investment holding company, provides engineering and project management services primarily in Malaysia. The company offers engineering services comprising engineering design; and construction supervision services in the areas of quality and safety, work progress, finance, and coordination. It also provides project management and construction management services; and building information modelling services.

The company undertakes railway, highway, airport, infrastructure, ports, townships, petro-chemical, bridges, drainage and irrigation, power plant, water, and town planning and development projects. HSS Engineers Berhad was founded in 2001 and is headquartered in Kuala Lumpur, Malaysia.

B1 (1-4), Block B, Plaza Dwitasik
No. 21, Jalan 5/106, Bandar Sri Permaisuri
Kuala Lumpur, 56000 Malaysia

Phone: +603 9173 0355
Fax: +603 9173 0939
Website: www.hssgroup.com.my
 

HSS Engineers aims to raise RM31.91 million from IPO

KUALA LUMPUR: HSS Engineers Bhd, an engineering and project management services provider, aims to raise gross proceeds of RM31.91 million from its initial public offering (IPO).

Executive director Datuk Kunasingam Sittampalam said about 75 per cent of the proceeds would be utilised for the group’s expansion plan into India and future ventures into the provision of support services for the water and power sectors in Malaysia.

He said a further 2.2 per cent (RM708,000) would be allocated for general working capital expenditure and another 12.6 per cent (RM4 million) for the repayment of bank borrowings.

“The balance of 10 per cent of the proceeds (RM3.2 million) will be utilised to defray listing expenses,” he told a press conference after the prospectus launch in conjunction with the company’s listing on the ACE Market of Bursa Malaysia here yesterday.

Under the IPO, the company is making a public issue of 63.82 million new shares at an issue price of 50 sen each.

Out of this, 15.95 million shares will be made available for application by the public, 7.98 million shares to eligible directors, staff and business associates while the remaining 39.88 million shares will be placed out to selected investors.

In addition, the company’s major shareholders is offering 31.9 million shares at 50 sen a share to approved Bumiputera investors.

At that price, the company will have a market capitalisation of RM160 million upon listing, tentatively on August 10.

Commenting on its expansion plan, Kunasingam said the group was looking at acquiring more infrastructure projects in India and West Asia.

“We already have our presence in both regions through our Building Information Model (BIM).

“Upon listing, we are scouting for projects in infrastructure areas,” he said.

He added that the group was looking to tap into India’s infrastructure market as it was one of the fastest growing economies in the world now.

As for West Asia, he said the group was eyeing to venture into Dubai and Qatar as these countries had pockets of opportunities to offer.

“Dubai which will host Expo 2020 will roll out a lot of infrastructure projects, as will Qatar which will be hosting the World Cup in 2022.

“These are the main drivers that will accelerate the infrastructure and we think there are opportunities available for us to participate,” said Kunasingam.

The company’s current orderbook stands at RM365.9 million which will last over the next two to five years.

While remaining focused on its engineering and project management services as well as BIM services, he said the group was gearing up for a proposed venture into a fourth core service which is facility management.

Moving forward, the outlook for the Malaysian engineering and project management services market is expected to remain positive supported by continuing development of various government-led infrastructure projects and sustained economic growth.

“This will continue to create demand and new opportunities for organic growth and long-term development of the group,” said Kunasingam. — Bernama