Mattan hopes to raise RM30m from IPO in first half of 2018

PETALING JAYA: Mattan Bhd, an engineering, procurement, construction and commissioning (EPCC) solutions provider for renewable energy (RE) infrastructure, is planning an initial public offering (IPO) on the ACE Market of Bursa Malaysia in the first half of 2018 and intends to raise RM30 million from the exercise.

Chairman Levin Tan (pix) said the proceeds will be used for the acquisition of a 2MW biogas concession in Endau, Johor, and to finance its future participation in large-scale solar farm projects.

“The ‘Berhad’ status is like a passport for us to do business abroad, especially when it comes to dealing with foreign government entities. In a similar fashion, it enhances our opportunities locally but it is also equally important for our foreign ventures,” Tan told SunBiz in an interview recently.

Mattan plans to submit its IPO application to Bursa Malaysia after Chinese New Year. It has appointed MIDF Investment Bank Bhd as the underwriter for the IPO.

Mattan’s services cover EPCC solutions, including financing arrangement for all RE projects in Malaysia and Asia. As a consultant and system integrator, Mattan designs and manages multi-disciplinary RE projects spanning solar, biogas, biomass and mini hydro from the early stages of site assessment, feasibility study, design and quota application, financing arrangement to the project management of the construction, data collection, and operation and maintenance.

By end of 2018, Mattan is expected to have a portfolio of completed projects of more than 90MW solar installation on rooftop/solar farm and 10MW biogas projects in Malaysia and Asia.
Its subsidiary Mattan Engineering Sdn Bhd is undertaking the design, construction and operation works of a large-scale solar 50MW photovoltaic generation facility in Rembau, Negri Sembilan, which is one of the largest solar farms in the country.

Mattan has an order book of RM300 million (2017-2018) and it plans to enter the RE markets in Cambodia, the Philippines, Indonesia and the Middle East in 2018. The company is tendering for RM2 billion worth of projects in Indonesia and Cambodia.

“The idea is to expand the platform across Southeast Asia. The dream of the company, under a five-year plan, is we want to be a Southeast Asian powerhouse for RE,” said Tan.

He added that if it wins one of the three 30MW projects in the country, it will become the largest EPCC contractor for RE in Malaysia.

“We should use this advantage to move overseas because Southeast Asia is in its infancy (below 10 years) for RE.”

He added that there are limitations in Malaysia under a quota and bidding system.

Tan said Mattan is targeting to level its solar and biogas businesses to 50:50 in the next two years, from 70% solar and 30% biogas now, as the potential for biogas is huge given that there are over 400 mills in Malaysia, with 300 mills in Peninsular Malaysia alone.

He said RE in Malaysia is segmentised and more often than not, saturated in one segment, while Mattan has the capability to deliver multi-disciplinary RE projects.