SIGNATURE Alliance Group Bhd (SAG), an interior fitting-out specialist, aims to raise RM161.2 million through its IPO ahead of its scheduled listing on the ACE Market of Bursa Malaysia Securities Bhd on June 5, 2025.
The IPO involves the issuance of 260 million new shares at an issue price of 62 sen per share.
SAG plans to allocate RM88 million (54.6%) of the proceeds to build a new corporate office and production facility in Selangor, aiming to boost automation and improve project delivery.
While RM30.1 million (18.7%) will be used as working capital to support its interior fitting-out projects.
The remaining funds will be used to repay bank borrowings (RM20 million), establish branch offices in Penang and Johor (RM12 million), acquire machinery and equipment (RM4 million), and cover listing expenses (RM7.1 million). ED and group CEO Darren Chang said the expansion is essential because the company’s current factories in Bandar Baru Bangi and Puchong, Selangor, no longer meet its operational demands. “One of our key goals is to centralise our office operations, as we currently do not have enough space.
“The funds raised will allow us to bring everyone together under one roof, expand our production facilities, and invest in new machinery to increase our production capacity,” he said at a press conference during the company’s prospectus launch.
Chang added that despite the recent underperformance of some ACE Market debutants amid challenging market conditions, the company remains confident in delivering strong results.
In a separate statement, SAG reported that from the financial years ending Dec 31, 2021, through Dec 31, 2024, and up to April 16, 2025, it completed 624 interior fitting-out projects with a total value of RM391.6 million.
“As of April 16 this year, the company has 69 ongoing projects with a total contract value of RM902.4 million and unbilled contract value of RM388.6 million, or 43.1% of the total,” it said.
The IPO subscription is open from today until May 21, 2025.
M&A Securities Sdn Bhd serves as the advisor, sponsor, managing underwriter, joint underwriter and joint placement agent, while Affin Hwang Investment Bank Bhd (Affin Hwang IB) acts as joint underwriter and joint placement agent for the IPO. — TMR
- This article first appeared in The Malaysian Reserve weekly print edition
The post Signature Alliance targets RM161m IPO appeared first on The Malaysian Reserve.
