EA Technique to join IPO bandwagon

Another subsidiary Sindora, a private company of ultimate parent Johor Corp, acquire part of the company from two significant shareholders before undertaking an initial public offering (IPO). The proposed listing is expected to be completed by the end of this year.

Kulim said Sindora has proposed to buy 14.4% of EA Technique from Abdul Hak Mohd Amin and Hamidah Omar for MYR30.29m ($9.31m). Abdul Hak is the shipowner and operator's managing director and Hamidah Omar is his wife and is also involved in the management of the company.

The purchase will see Sindora increasing its current 51% stake to 65.4% and Abdul Hak reducing his stake from 34% to 24.6%. Hamidah will see her stake reduced from 15% to 10%. The purchase will be funded by internally generated funds.

EA Technique will use the proceeds for business expansion, working capital purposes and listing expenses.

EA Technique was incorporated as a private limited company in 1993. Its main asset is Johor Shipyard and Engineering whose principal activities are in shipbuilding, ship repair and minor fabrication. It is now also a shipowner operating vessels for the transporation and offshore storage of oil and gas, while also providing port marine services.