PE-backed Serba Dinamik raises $135m in Malaysia IPO

The company sold 398.4 million shares – including 118 million existing shares – at MYR1.50 apiece, prior to the exercising of an overallotment option of up to 58.4 million shares, according to a prospectus. It is said to be the largest IPO in Malaysia in more than 18 months.

Two funds managed by COPE together offloaded 85.3 million shares; their interest in Serba Dinamik has fallen from 16.07% to 6.41%. COPE-KPF Opportunities 1 – a joint investment vehicle backed by COPE and KPF, a Malaysian financial services cooperative – and COPE Opportunities 2 invested in the company in 2013.

Serba Dinamik provides engineering solutions to the oil and gas and power generation industries in Malaysia, Indonesia, the United Arab Emirates, Bahrain and the UK. It primarily offers operation and maintenance services involving gas and steam turbines, engines, and boilers in oil and gas production plants, oil and gas refineries, gas processing plants, and petrochemical manufacturing facilities.

The company’s largest and longest standing customer is Petronas and most of its employees are based in Malaysia. The Malaysia share of overall revenue has fallen from more than 50% to 36% over the last three years as efforts have been made to boost business in the Middle East, which now accounts for 45% of revenue, up from 20% in 2013.

Revenue came to MYR1.4 billion in 2015, up from MYR755.8 million the previous year. Net profit rose to MYR156.6 million from MYR67.4 million over the same period.

COPE is owned by asset manager Opus Capital and CMS Capital, the private equity arm of domestic conglomerate Cahya Mata Sarawak. In addition to the two funds that invested in Serba Dinamik, it manages the COPE Opportunities 3 Fund.

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• Topics
• Southeast Asia
• IPO
• Industrials
• Malaysia
• Commodities
• Exit