Leap market-listed Supreme Consolidated Resources Bhd has signed an underwriting agreement with Kenanga Investment Bank Berhad in conjunction with its listing on the ACE Market on Bursa Malaysia Securities Berhad.

The IPO will entail a public issuance of 70,000,000 new shares of SCRB ("IPO Shares"); whereby Kenanga will underwrite 16,250,000 IPO Shares; which comprises 8,600,000 IPO Shares representing the portion made available to the Malaysian public via balloting and 7,650,000 IPO Shares to be allocated to eligible directors, key senior management, employees as well as business associates of SCRB and its subsidiaries.

The remaining 53,750,000 IPO Shares will be allocated by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

According to SCRB, proceeds from the IPO will be utilised to partly finance the expansion of a warehouse facility that will serve as an additional distribution centre to cater to the expansion of its products. The remaining proceeds will be used for working capital and defray the listing expenses.

SCRB is expected to be listed on the ACE Market of Bursa Securities in the fourth quarter of 2024. Kenanga is the Principal Adviser, Sponsor, Underwriter and Placement Agent.