AME Elite to raise RM111.1m from IPO

AME Elite Consortium Bhd plans to raise RM111.10mil from the issuance of 85.4 million new shares at RM1.30 each.

KUALA LUMPUR: Integrated industrial property solutions provider AME Elite Consortium Bhd plans to raise RM111.10mil from the issuance of 85.4 million new shares at RM1.30 each as it seeks to list on the Main Market of Bursa Malaysia.

A total of RM69.10mil would be for future industrial property development and investment projects including land acquisitions and joint ventures, within 36 months from listing, it said on Tuesday following the launch of its prospectus.

AME said RM23mil would be for working capital for the i-Park @ Senai Airport City development, including funding the initial development costs for Phase 3 of the development and partially funding the construction of a clubhouse.

Another RM9mil would be used to complete the expansion of the group’s precast concrete fabrication capacity and the remaining RM10mil for defraying listing expenses.

Applications for the IPO will close on Monday, Sept 30 at 5pm. It is set for listing on Oct 14.

AME said of the 85.4 million new shares, 8.5 million shares would be offered to the public; 8.5 million shares for eligible directors and employees. 19.2 million shares would be placed out to selected investors and 49.1 million shares placed out to approved Bumiputera investors.

Under the listing exercise, the shareholders are also offering for sale 42.7 million existing shares to institutional and selected investors.

AME group managing director Kelvin Lee Chai said that the proposed listing on the Main Market was the culmination of AME’s track record in undertaking design-and-build projects

for large manufacturing plants and industrial buildings in Malaysia, as well as developing industrial parks in Johor under the “i-Park” brand.

The group’s i-Park @ SiLC, i-Park @ Indahpura (Phase 1 & 2) and i-Park @ Senai Airport City have garnered investments from multi-national and local corporations across various sectors, such as electronics, logistics, consumer and food.

In addition to expanding its industrial parks to other states in Peninsular Malaysia, AME will also focus on completing ongoing industrial park projects and increase the portfolio of industrial properties in Johor.

As part of this, AME acquired a 76.59-acre land for RM135.1 million in August 2019 to build the third phase of i-Park @ Senai Airport City, following the sale and lease of around 72% of the total units launched from Phase 1 and 2.

With that, i-Park @ Senai Airport City expanded to about 189 acres. Construction of the third phase of i-Park @ Senai Airport City is scheduled to begin by the first quarter of 2020, and all phases of development are estimated to be completed by 2025.

Furthermore, through its jointly-controlled entity Axis AME IP Sdn Bhd, AME is developing Phase 3 of i-Park @ Indahpura, which is estimated to be completed by 2023.

Based on total units launched as at Aug 27, 2019, i-Park @ SiLC was 100% taken-up (84% sold and 16% leased), i-Park @ Indahpura (Phase 1 and 2) was 95% taken up (79% sold and 16% leased) and i-Park @ Senai Airport City (Phase 1 and 2) was 72% taken up (43% sold and 29% leased).

CIMB Investment Bank Bhd is the principal adviser, managing underwriter, joint underwriter and joint bookrunner, while RHB Investment Bank Bhd is the joint underwriter and joint bookrunner for AME’s IPO.

Read more at thestar.com.my