Success Transformer to list unit

Written by The Edge Financial Daily


Thursday, 03 September 2009 00:21

KUALA LUMPUR: Success Transformer Corporation Bhd (STB) has proposed to list its wholly owned subsidiary Seremban Engineering Sdn Bhd (SESB) on the Main Market of Bursa Malaysia Securities.

STB told Bursa Malaysia yesterday its board had approved the proposed flotation initiative, which would comprise several proposals to facilitate the listing exercise.

The electrical apparatus and lighting expert said further details on the proposed exercise would be announced in due course.

Although STB did not mention the rationale of the listing, it is fair to assume that the exercise is to facilitate further expansion of SESB, which is in the business of manufacturing and fabrication of process equipment.

SESB qualifies to list if it has an uninterrupted net profit of three to five full financial years (FY), with aggregate of at least RM20 million and a net profit of at least RM6 million for the most recent full year.

Alternatively, to qualify for listing on the Main Market, SESB must have a total market capitalisation of at least RM500 million upon listing and generated operating revenue for at least one full year prior to submission.

SESB's products include unfired pressure vessels, heat exchangers, tanks, silos and other machinery or parts.

It also offers mechanical, maintenance and shutdown services. In addition, the company, through its subsidiary, engages in the supply of labour, and hiring and servicing of machinery equipment.

SESB serves chemical, edible oil, palm oil, biodiesel, oleo chemical, and food and waste management industries. It was incorporated in 1979 and is based in Seremban.