Southern Cable seeks Bursa’s main market transfer in second half of 2021

KUALA LUMPUR: Southern Cable Group Bhd is progressing to the next milestone in its corporate history as it seeks to transfer its listing status from the ACE Market to the Main Market of Bursa Malaysia.

The company registered an aggregated net profit of RM76 million for the past three financial years from December 31, 2018 (FY18) to FY20.

It also recorded positive net cash from operating activities of RM43.9 million in FY2020, and maintained positive cash flow for the same three-year period.

With this, the company said it had fulfilled the Securities Commission’s Equity Guidelines for the proposed transfer listing.

The rules require listed corporations to demonstrate uninterrupted profit for the past three to five financial years with an aggregate net profit of at least RM20 million.

Southern Cable managing director Tung Eng Hai said the upcoming corporate milestone correspondscwith the company’s operational expansion as it looksvto fulfil growing demand in the domestic market, and target new sectors for its cables and wires products.

“The group remained resilient in the past year despite the impact of Covid-19 on the economy, as we continue to fulfil demand for cables and wires in the essential power and telecommunications sectors.

“We also look forward to capturing greater demand going forward from Malaysia’s infrastructure project rollouts and general economic growth,” he said.

Tung said the company was optimistic of expanding into new sectors that would strengthen its prospects further.

Its automotive wires had undergone successful internal trials, and were being commercially evaluated by potential clientele in Malaysia and Vietnam, he added.

“We are also anticipating to commence exports of our industrial cables to a new client in the US. These are targeted to materialise in the second half of 2021.

“Hence, the Main Market transfer reflects our growth story even as we seek to attract the wider investing community, and increasingly stamp our mark in Malaysia and internationally,” he said.

The company is aiming for the transfer listing to take place in the second half of 2021, pending approvals from shareholders, the SC and Bursa.

Southern Cable was listed on the ACE Market on October 16, 2020 at an initial public offering price of 34 sen per share.

Source: NST