KUALA LUMPUR: MN Holdings Bhd (MNHB) has signed an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) exercise to list on the ACE Market of Bursa Malaysia.

       MNHB is principally involved in the provision of infrastructure utilities services comprising underground utilities engineering services and solutions and substation engineering services and solutions.

       In a statement, MNHB said the IPO entailed a public issue of 81.8 million new shares in MNHB, representing 20.0% of the enlarged share capital and an offer for sale of 40.9 million existing shares to selected investors by way of private placement.

       Of the 81.8 million new shares, 20.4 million new shares will be made available to the Malaysian public via balloting; 8.2 million new shares for its eligible directors and employees under pink form allocations; 51.1 million new shares are reserved for private placement to Bumiputera investors approved by the Ministry of International

       Trade and Industry while the remaining two million new shares will be placed out to selected investors.

       Pursuant to the underwriting agreement, M&A Securities will underwrite a total of 28.6 million new shares made available for the Malaysian public and pink form allocations.

       “The listing will enable us to tap into the equity capital market to raise funds to support our business expansion for the underground utilities and substation engineering services and solution segments,” MNHB managing director Loy Siong Hay said.

       “Our operational resources to carry out underground utilities engineering and substation engineering works for our customers depend largely on the availability of our machineries and equipment.

       “Proceeds from the IPO would generally be used to purchase various machineries and equipment to cater for underground utilities and substation engineering projects of different scale and complexities.

       “In addition, we believe that the acquisition of these machineries and equipment will allow us to scale up our resources and project capabilities in undertaking more projects,” he added.

       Part of the proceeds will also be used for repayment of bank borrowings, general working capital and to defray the estimated listing expenses.

       MNHB is scheduled to be listed on the ACE Market of Bursa Securities by April 2022.

       M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.