MN Holdings impresses on its first day of trading

Group aims to take on role as main contractor for LSS projects

MN Holdings Bhd posted a solid performance on its maiden day of trading on Bursa Malaysia’s ACE Market yesterday, opening at 26 sen per share, 5 sen or 23.81%, higher than the offer price. It closed at 23.5 sen for a 2.5 sen or 11.9% premium over its offer price of 21 sen, on volume of 212.55 million shares.

With an enlarged share capital of 408.75 million shares, this translates into a market capitalisation of RM96.06 million for MN Holdings.

The underground utilities and substation engineering services provider has tendered for several large-scale solar (LSS) substation jobs as project management coordinator and for engineering design works. The group has secured three engineering, procurement, construction and commissioning (EPCC) projects under LSS2 in the capacity as sub-contractor.

MN Holdings managing director Loy Siong Hay believes it is well positioned in securing the tenders as it has proven capabilities in undertaking LSS projects.

“We are involved in EPCC projects for main contractors who have secured solar photovoltaic power plant projects under the LSS programme which was introduced by the Energy Commission of Malaysia in 2016.

“As an underground utilities and substation engineering specialist, we are capable to assume the management and supervisory role of the entire project, source for necessary construction materials, substation equipment and systems for installation and commissioning,” he said in a statement.

Going forward, the group aims to take on the role of main contractors for LSS project owners. Loy explained that this will enable it to build a track record to position itself to secure more contracts in the future and strengthen its substation engineering services and solutions business segment.

He expressed optimism with the power infrastructure utilities industry in Malaysia, as the Covid19

transition to the endemic phase and the reopening of Malaysia’s borders, have clearly provided a positive impact on the national economy.

“This augurs well for the power infrastructure utilities industry in Malaysia as investments in utility infrastructure are driven by longterm economic growth, population growth and urbanisation, growing demand for electricity, foreign and domestic investment and Malaysia’s renewable energy generation targets.”

MN Holdings raised RM17.2 million from the public issue of 81.8 million new shares alongside the offer sale of 40.9 million new shares to selected investors via private placement.

Of the proceeds it has earmarked RM5.84 million or 34% to purchase machinery and equipment over the next two years to support its expansion and has allocated RM4.33 million or 25.2% as general working capital for new and existing projects. The remainder of the proceeds will be used for the repayment of bank borrowings amounting to RM4 million (23.3%) and RM3 million (17.5%) for listing expenses.