| KUALA LUMPUR
KUALA LUMPUR Dec 30 Malaysian engineering group
Serba Dinamik Holdings Bhd is looking to raise 584 million
ringgit ($130.29 million) in an IPO on the domestic stock
exchange in February, its CEO said, in what would be the
country's biggest listing in 19 months.
The company will offer 389.4 million shares in the IPO with
a retail price of 1.50 ringgit each, though the final offer
price will be determined after a bookbuilding exercise with
institutional investors in January, group chief executive
officer Mohd Abdul Karim Abdullah told Reuters in an interview.
Reuters had reported in August citing sources that the group
was looking to raise about 600 million ringgit in an IPO.
Appetite for IPOs in the Malaysia market has shrunk on the
back of a weak currency and volatile commodities markets that
have dragged down economic growth in the country.
The largest Malaysian IPO this year was by Ranhill Holdings
Bhd for 386.8 million ringgit through a reverse
takeover, according to Reuters data.
Malakoff Corporation Bhd and Sunway Construction
Group Bhd raised 2.74 billion ringgit and 550 million
ringgit, respectively, in May and July 2015.
Serba - which provides engineering solutions to the oil and
gas, and power sectors - will use part of the IPO proceeds for
cross-border acquisitions, with a focus on companies with
manufacturing capabilities, group CEO Karim said.
"We want to add on to our field services and offshore
capabilities. (Through these acquisitions) we can also supply
parts to the clients," he said.
Karim said the group continued to generate revenue and
income growth despite operating in a low crude oil price
"We are less susceptible to low oil prices as we are a
provider of engineering solutions to the oil and gas, and power
generation industries with extensive international presence," he
said, adding that Serba's customers and projects are primarily
in the production and refining segments, which are more stable
than the exploration segment of the oil and gas industry.
Outside of its home country, Serba also has businesses in
Indonesia and the Middle East, among others.
RHB Investment Bank, Affin Hwang Investment Bank,
AmInvestment Bank and Kenanga Investment Bank are bankers for
($1 = 4.4830 ringgit)
(Reporting by Liz Lee; Editing by Muralikumar Anantharaman)