ES Sunlogy Berhad Signs Underwriting Agreement With M&A Securities for IPO Exercise

Group prepares ACE Market listing with public issue of 140.0 million shares

KUALA LUMPUR, MALAYSIA / ACCESSWIRE / December 19, 2024 /ES Sunlogy Berhad ("ES Sunlogy" or the "Company"), an established provider of mechanical and electrical ("M&E") engineering services and renewable energy solutions, is pleased to announce that it has entered into an underwriting agreement with M & A Securities Sdn Bhd("M&A") for the Company 's upcoming initial public offering ("IPO") on the ACE Market of Bursa Malaysia Securities Berhad ("Bursa Securities").

(L-R) Mr. Gary Ting Hua Tai, Head of Corporate Finance of M & A Securities Sdn Bhd; Datuk Bill Tan, Managing Director of M & A Securities Sdn Bhd; Mr. Khor Chuan Meng, Managing Director of ES Sunlogy Berhad and Mr. Chu Kerd Yee, Executive Director of ES Sunlogy Berhad

Based on the prospectus exposure published on the Bursa Securities website, ES Sunlogy 's listing exercise involves the public issue of 140.0 million new shares, representing 20.0% of the Company 's enlarged share capital of 700.0 million shares, and an offer for sale of 70.0 million shares, representing 10.0% of the enlarged share capital.

The IPO shares will be allocated in the following manner:

Public Issue

Malaysian public

• 35.0 million issue shares representing 5.0% of the Company 's enlarged share capital, of which 2.5% will be made available to public investors and 2.5% to Bumiputera public investors.

Eligible directors, employees and persons who have contributed to the success of ES Sunlogy and its subsidiaries (collectively, the "Group") ("Eligible Persons")

• 17.5 million issue shares representing 2.5% of the Company 's enlarged share capital to be allocated to Eligible Persons ("Pink Form Allocations").

Private placement to Bumiputera investors

• 87.5 million issue shares representing 12.5% of the Company 's enlarged share capital reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry ("MITI").

Offer for sale

• Offer for sale of 70.0 million offer shares representing 10.0% of the Company 's enlarged share capital by way of private placement to selected investors.

Under the underwriting agreement, M&A will underwrite 52.5 million issue shares to be made available for application by the Malaysian public via public balloting and Pink Form Allocations. The balance of 87.5 million issue shares and 70.0 million offer shares will be placed out by M&A and will not be underwritten by M&A.

Managing Director of ES Sunlogy Berhad, Mr. Khor Chuan Meng, said, "The signing of this underwriting agreement with M&A marks a significant corporate milestone for ES Sunlogy as we embark on our IPO journey. With a solid track record in delivering high-quality M&E engineering services and a growing portfolio of renewable energy projects undertaken, we are well-positioned to capitalise on the growing demand for sustainable M&E engineering solutions. Based on independent market research, sectors such as commercial, residential, industrial, solar, and data centers are demonstrating a rising need for energy-efficient and sustainable solutions, positioning us to effectively meet these customer demands. The proceeds to be raised from this IPO will enable us to further strengthen our technical capabilities and expand our existing project portfolios, while also allowing us to grow our footprint in the generation and sales of renewable energy."

(L-R) Datuk Keh Chuan Seng, Non-Independent Non-Executive Director of ES Sunlogy Berhad, Mr. Khor Chuan Meng, Managing Director of ES Sunlogy Berhad; Mr. Chu Kerd Yee, Executive Director of ES Sunlogy Berhad; Datuk Bill Tan, Managing Director of M & A Securities Sdn Bhd and Mr. Gary Ting Hua Tai, Head of Corporate Finance of M & A Securities Sdn Bhd.

According to the prospectus, independent market research by Providence Strategic Partners highlights robust growth of Malaysia 's M&E engineering industry, projected to expand from RM7.3 billion in 2023 to RM10.6 billion in 2026 at a CAGR of 13.2%. This growth is driven by rising investments and growth in the residential, commercial and industrial property markets support demand for M&E engineering services as well as growth in the end user industries which drives demand for M&E engineering services. The data centre sector presents opportunities for the company as demand for energy-efficient and sustainable infrastructure solutions continues to grow, supported by Malaysia 's position as a digital infrastructure hub. The renewable energy sector is also thriving, with solar photovoltaic (PV) capacity growing at a CAGR of 29.3% from 2019 to 2022, supported by government initiatives to further tap into new renewable energy solutions via various initiatives such as the Corporate Green Power Programme, National Energy Transition Roadmap and Large-Scale Solar 5 progamme recently launched. These trends align with ES Sunlogy 's strategic focus on renewable energy sector, positioning the Group to capitalise on these opportunities through its IPO.

ES Sunlogy 's commitment to quality, innovation, and sustainability has positioned it as a trusted partner in the industry, and the Group aims to leverage its IPO to further contribute to Malaysia 's energy transition goals.

ABOUT ES SUNLOGY BERHAD

ES Sunlogy Berhad ("ES Sunlogy" or the "Company") is an established provider of mechanical and electrical ("M&E") engineering services, specialising in electrical engineering services for electricity supply distribution systems, mechanical engineering services for building services, as well as generation and sales of renewable energy. The Company and its subsidiaries (collectively, the "Group") has an extensive portfolio of projects across Malaysia, including industrial, commercial and residential properties, and solar facilities. ES Sunlogy has established itself as a trusted name in delivering innovative, efficient, and high-quality engineering solutions. The Group is committed to contributing to Malaysia 's sustainable energy landscape with its focus on solar energy projects and renewable energy solutions.

For more information, visit www.essunlogy.com.

Issued By:Swan Consultancy Sdn. Bhd. on behalf of ES Sunlogy Berhad

For more information, please contact:

Jazmin Wan
Email:j.wan@swanconsultancy.biz

Mandy Tan
Email:m.tan@swanconsultancy.biz

SOURCE: ES Sunlogy Berhad

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