Kulim seeks to list E. A. Technique

PETALING JAYA: Kulim (Malaysia) Bhd is seeking to list E. A. Technique (M) Bhd on the Main Market of Bursa Malaysia, an indirect subsidiary company of Kulim held through Sindora Bhd, a wholly-owned subsidiary of Kulim.
E. A.Technique is a ship-owner and operator of marine vessels for the transportation and offshore storage of oil and gas, and provider of port marine services. Its wholly-owned subsidiary Johor Shipyard and Engineering Sdn Bhd is involved in shipbuilding, ship repair and minor fabrication.
To facilitate the proposed initial public offering (IPO), Sindora entered into a conditional share sale and purchase agreement with shareholders Datuk Abdul Hak Md. Amin and Datin Hamidah Omar to acquire an aggregate of 56.1 million ordinary shares of par value 25 sen each in E. A. Technique, said Kulim in a filing with Bursa Malaysia yesterday.
The 56.1 million ordinary shares represent 14.4% of the present total issued and paid-up share capital of E. A. Technique, at a purchase consideration of RM30.29 million to be satisfied fully in cash, which will be funded by internally generated funds.
According to Kulim, the proposed IPO entails a proposed public issue of 114 million new E. A. Technique shares representing 22.6% of the enlarged issued and paid-up share capital of E. A. Technique.
Under the proposed public issue, 25.2 million issue shares will be available for application by the Malaysian public via a balloting process, 78.8 million issue shares allocated by way of placement to institutional and selected investors, and 10 million issue shares reserved for eligible directors and employees of E. A. Technique and its subsidiary.
In conjunction with the proposed listing, Abdul Hak and Hamidah being among the promoters of E. A. Technique, will collectively make an offer for sale of an aggregate of 15 million existing E. A. Technique shares by way of placement to institutional and selected investors.
E. A. Technique plans to list 504 million E. A. Technique shares on the Main Market of Bursa Malaysia.
The present authorised share capital of E. A. Technique is RM200 million comprising 800 million E. A. Technique shares, of which RM97.5 million comprising 390 million E. A. Technique shares have been issued and fully paid-up.
The proceeds from the proposed public issue will be used for repayment of bank borrowings, business expansion, working capital purposes and to defray the proposed IPO expenses.
"The proposed IPO will enable E. A. Technique to raise funds from the capital market to finance its business activities and expansion plans. Being accorded listing status will allow E. A. Technique Group greater financial flexibility when pursuing its business strategy and growth plans," said Kulim.
RHB Investment Bank has been appointed as the principal adviser for the proposed IPO which is expected to be completed by year-end. The applications to the relevant authorities in relation to the proposed IPO are to be submitted within a month.