KUALA LUMPUR: Saliran Group Bhd, a supplier and distributor of pipes, fittings and flanges as well as related parts and accessories, and steel products, has signed an underwriting agreement with Malacca Securities Sdn Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
Established in 2011, Saliran and its subsidiaries have built a reputation for delivering high-quality products such as pipes, fitings and flanges as well as steel products that are primarily used in the oil and gas industry to support industrial processing, refining and manufacturing activities. Saliran also undertakes the manufacturing of custom fittings and flanges, providing tailored solutions to meet specific industry needs. With an extensive network spanning Malaysia, Indonesia, Singapore, China, South Korea and Vietnam, the group is well-positioned to capitalise on opportunities in industrial and infrastructure development across Southeast Asia.
Saliran’s IPO involves the issuance of 80.4 million new shares (issue shares), which accounts for 21% of the company’s enlarged issued share capital of 382.9 million shares, alongside an offer for sale of 38.3 million shares (offer shares), representing 10% of the enlarged issued share capital.
Under this agreement, Malacca Securities will underwrite 26.8 million issue shares designated for the Malaysian public via public balloting and pink form allocations. The remaining 53.6 million issue shares will be issued to selected bumiputra investors approved by the Ministry of Investment Trade and Industry and selected investors as well as 38.29 million offer shares to be offered to selected investors.
Saliran managing director Liaw Choon Wei said this underwriting agreement marks an important milestone in Saliran’s path to becoming a public listed company and this IPO will help drive their growth strategy, especially with them expanding their presence in Indonesia and increasing inventory capacity to seize emerging market opportunities in Southeast Asia.
Saliran obtained Bursa Securities’ approval for the listing on ACE Market of Bursa Malaysia on Nov 7, 2024 and is scheduled to be listed by March 2025, with Malacca Securities as the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
