OCK to list 52%-owned power unit on ACE Market

PETALING JAYA: OCK Group Bhd, a telecommunications network solutions provider with a regional footprint, plans to undertake a proposed listing of its subsidiary, EI Power Bhd (EIP) on the ACE Market of Bursa Malaysia.

Prior to this planned listing, EIP will undergo a restructuring exercise to acquire the entire equity interest in EI Power Technologies Sdn Bhd (EIPT).

The proposed acquisition is conditional upon the approval from the authorities for the proposed listing, a statement by OCK said.

The purchase consideration will entirely be satisfied through the issuance of 570.5 million new EIP shares, it said.

EIPT is currently OCK’s 52%-owned subsidiary and it is an engineering, procurement, construction and commissioning solutions provider that specialises in mission critical power solutions, conventional power solutions and renewable energy power solutions.

For its listing plans, EIP is proposing to undertake an initial public offering (IPO) with a public issue of 129.5 million new shares and an offer for sale of 70.0 million shares.

“We are immensely excited to announce the proposal to list our subsidiary. This exercise represents a significant milestone for OCK, allowing us to unlock the value of our investments while tapping into the vast industry demand for power solutions as well as data centre infrastructures.

“Among others, this will enable us to better value the subsidiary’s business, securing the necessary capital to further expand our existing scale and presence, capturing new opportunities beyond Malaysia venturing into neighbouring countries such as Thailand while increasing the visibility of the longer-term growth strategy,” OCK group managing director Datuk Sam Ooi Chin Khoon said.

The proceeds raised from the IPO will be allocated to support EIP’s business growth through the setup of a new headquarters cum warehouse, capital expenditure for installation of building energy efficiency systems for its target clients, establishment of branch offices in Thailand and Johor as well as working capital requirements for its future projects, the company said.

M&A Securities Sdn Bhd is the appointed adviser and sponsor for the proposed IPO exercise.