Sarawak Cable to raise RM9.1m from IPO

Friday May 7, 2010
Sarawak Cable plans two new products
By SHARIDAN M. ALI
sharidan@thestar.com.my


( Notes : Leader Universal own 25% of Sarawak Cable as the later being an associate)

KUALA LUMPUR: Sarawak Cable Bhd, a power cable manufacturer, aims to raise RM9.1mil from its initial public offering (IPO).

Managing director and chief executive officer Aaron Toh Chee Ching said the proceeds would be used to produce and commercialise two new products – low-voltage aerial bundled cables and low-voltage two-core twin twisted cables – by year-end.

“To boost our production capacity, we are investing in three additional machineries and equipment that will see our production capacity increase by 47%,” he said after the company’s prospectus launch yesterday.

The event was officiated by Second Minister of Planning and Resource Management and Minister of Public Utilities of Sarawak Datuk Amar Awang Tengah Ali Hassan.

Sarawak Cable’s IPO involves the sale of 19 million 50 sen shares to approved bumiputra investors and a public issue of 13 million new shares, of which six million are made available for the public and the remainder for eligible directors, employees and business associates. All shares are offered and issued at 70 sen each.

The company seeks to list on the main market of Bursa Malaysia on May 25. CIMB Investment Bank Bhd is the advisor, underwriter and placement agent.

“Post-IPO, our 50%-owned dormant subsidiary Sarawak Power Solutions Sdn Bhd will seek to venture into power-related and renewable energy industry,” said Toh.

He said that after the listing, Sarawak Energy Bhd would hold a 16% stake in Sarawak Cable.

“Our orderbook stands at RM64.2mil as at April, of which the bulk is due by year-end,” he said.

On a proforma basis, Sarawak Cable posted a profit after tax of RM8.1mil on a revenue of RM89.8mil for the financial year ended Dec 31, 2009.