Advance Technologies appoints Malacca Securities to underwrite ACE Market IPO

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Advance Technologies underwrites IPO

Highlights

Advance Technologies Asia Bhd appoints Malacca Securities as underwriter, principal adviser, sponsor and placement agent for its upcoming ACE Market IPO.
The IPO aims to raise funds to expand project teams, invest in equipment and secure more contracts, alongside an offer for sale of existing shares by five major shareholders.
The company has an outstanding order book of RM122 million, more than half of which is related to data centres, and is positioning itself to provide long-term maintenance services to strengthen its recurring revenue base.

This article was translated from the original. Read the original version by our correspondent here.

Underwriting role and use of proceeds

As reported by The Edge Malaysia, Advance Technologies Asia Bhd has appointed Malacca Securities Sdn Bhd as underwriter for its upcoming ACE Market listing.

In a statement on Monday, managing director Ong Keng Yong said the listing was seen as an important platform to support the company's next phase of growth. He said the IPO would raise funds to help the contractor expand its project teams and invest in more project equipment, enabling it to take on more contracts at the same time. No timeline for the IPO was given.

Malacca Securities will also act as principal adviser, sponsor, placement agent and underwriter for the IPO. The offering also includes an offer for sale of existing shares by five shareholders, including Ong Keng Yong and executive director Chew Tee Kai.

The company's position in the M&E contracting market

Advance Technologies Asia provides services to the telecommunications, data centre, horticulture farm and building facilities sectors. The Selangor-based company is among the latest mechanical and electrical contractors moving towards an IPO filing on Bursa Malaysia.

According to a draft prospectus published in July, the company had an outstanding order book worth RM122 million, with more than half of the work involving data centres. Ong said the company was also positioning its operations and maintenance services to capture the next business cycle in data centres, as completed facilities transition to long-term maintenance requirements, providing a strong recurring revenue base.

Among the major shareholders, Mok Chan Sing, Chai Jinq Kang and Kuan Shong Wei will also offer some of their shares in the IPO, reducing each of their stakes to below 5%. In the same landscape, Pioneer Heat Holdings Bhd was listed in September, while SKA Capital Bhd is scheduled to list on 11 Nov and MyDCD Bhd on 17 Nov.

In our earlier coverage of the approval of 27 data centre projects under the data centre task force (DCTF) through July 2026, we reported estimated investments of RM225.97 billion concentrated in Johor, Selangor and Negeri Sembilan. We also detailed projections for 4,053 job opportunities (the majority of them highly skilled), as well as a minimum local content requirement of 30% and regular monitoring of project implementation.

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