Southern Cable reaffirms plan to transfer to main market in Q4 | Money


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

KUALA LUMPUR, June 10 — Cable and wire manufacturer Southern Cable Group Bhd has reaffirmed its aim for a transfer to the Main Market of Bursa Malaysia Securities Bhd by the fourth quarter of 2021.

In a statement, the company said it secured shareholders’ approval for the proposed amendments to the company’s constitution today, paving the way for the transfer of its listing status subject to approvals from the Securities Commission and Bursa Securities.

Managing director Tung Eng Hai also revealed that Southern Cable was in the process of expanding its production capacity to support its growth by building a new production facility adjacent to its existing facility in Kuala Ketil, Kedah.

“Construction works for the new production facility are expected to commence in the second half of this year, which would provide an additional annual capacity of 5,000 kilometres (km).

“Upon completion in the second half of next year, the group’s total production capacity for cables and wires is anticipated to increase by about 15 per cent to 38,780km per annum,” he said.

Going forward, Southern Cable is expecting to register resilient growth in the second half of this year, as it meets the anticipated demand from the rollout of mega projects across key sectors such as power, telecommunication, infrastructure and construction, as well as oil and gas.

“This is on top of fulfilling existing contracts with key clientele in the industrial sector,” Tung added.

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

The counter closed at 46.5 sen, or 1.06 per cent lower, today, with 918,700 shares traded, giving the group a market capitalisation of RM372 million. — Bernama



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