ACO signs underwriting agreement with Alliance IB

PETALING JAYA: Electrical products distributor ACO Group Bhd has entered into an underwriting agreement with Alliance Investment Bank Bhd in conjunction with its initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia.

ACO’s IPO exercise entails a public issue of up to 58 million new shares, and an offer for sale of up to 25 million existing shares by way of private placement to identified investors.

Of the 58 million new shares which represent 19.3% of ACO’s enlarged issued share capital upon listing, 15 million shares will be allocated to the Malaysian public via balloting, nine million shares to eligible directors, employees and persons who have contributed to the success of the group and four million shares to identified investors by way of private placement. The remaining 30 million shares will be placed out to bumiputra investors.

It is scheduled to be listed on the ACE Market of Bursa Securities by March 2020, with

Alliance Investment Bank as the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.

ACO is an authorised distributor for 10 brands of electrical products and accessories.

Group managing director Tang Pee Tee @ Tan Chang Kim said proceeds raised from the public issue will be utilised to strengthen its market share by expanding further across the country and enhancing the service experience of its customers.