Kunasingam (middle) flanked by other directors from HSS Engineers and M&A Securites during a press conference following its listing.
KUALA LUMPUR: Malaysian provider of engineering and project management services HSS Engineers Bhd (HSS) made its debut on the ACE Market of Bursa Malaysia Securities Berhad yesterday at 58 sen, a premium of eight sen from the offer price of 50 sen.
The stock is categorised under the Trading/Services sector on the ACE Market and carries the stock name of HSSEB and stock code of 0185. The response to HSS’ Initial Public Offering (IPO) has been overwhelming, with the public portion of its IPO being oversubscribed by 21.71 times.
On top of the retail portion, the private placement of 39.885 million new shares to selected Investors has been taken up, and the 7.977 million new shares made available for application by the eligible directors, employees, and business associates/persons have also been fully subscribed.
The IPO exercise also entailed an offer for sale of 31.908 million shares to selected Bumiputera Investors approved by the Ministry of International Trade and Industry by way of private placement. This offer for sale portion has also been successfully placed out.
With the completion of the IPO exercise, the Group has raised a total gross proceeds of approximately RM31.91 million based on a public issue of 63.816 million new shares.
Consequently, the HEB Group’s market capitalisation stands at approximately RM159.54 million upon listing.
Speaking at the listing ceremony, the Executive Director and Co-Founder of HEB Group, Datuk Ir. Kunasingam Sittampalam shared, “Going forward, we aim to expand our geographical presence beyond Malaysia and venture into India and the Middle East through the acquisition of existing companies or the establishment of strategic partnerships or joint ventures with existing operating companies in these regions.
“This is to ensure long-term sustainability of the Group’s prospects and reduce dependency on a single market.
“Additionally, apart from remaining focused on strengthening our three existing core services, we are now poised to add a 4th core service to our offerings, namely facility management, which synergistically fits into our current service portfolio.
“This new division will allow us to position ourselves as a total engineering and project management service provider, and consequently, generate steady recurring income stream for the Group.”
The Group is also looking into providing support services to the water and power generation sectors in Malaysia. With regards to the water sector, the HEB Group is currently identifying suitable targets and/or partners that have the requisite track record and experience to potentially acquire or form a joint venture.
The Group is also seeking to collaborate with local and foreign partners with relevant expertise and track record for projects within the power sector, and they also plan to establish a power division within the Group.