KUALA LUMPUR: MyDCD Bhd, an engineering services provider specialising in the integration of mechanical, electrical, plumbing and fire protection (MEPF) systems for critical infrastructure, particularly data centres, is raising RM187.6 million from its initial public offering (IPO) for its listing on the ACE Market of Bursa Malaysia.
The IPO comprises a public issue of 335 million new ordinary shares and an offer for sale of 145 million existing shares, at an IPO price of 56 sen per share.
The offering is expected to raise total gross proceeds of RM268.8 million, of which RM81.2 million will accrue to the selling shareholders.
Based on its enlarged share capital of 1.794 billion shares, MyDCD is expected to have a market capitalisation of approximately RM1 billion upon listing.
Of the RM187.6 million gross proceeds from the public issue, 71.43%, or RM134 million, has been earmarked for working capital, primarily to support project execution and fund performance bonds.
A further RM39.90 million, or 21.27%, will be used to expand business operations through the recruitment of additional personnel, rental of new office space and staff training, while RM5 million will be allocated to enhance its IT systems.
The balance will be used to defray listing expenses.
MyDCD CEO Chris Ow Yong said the proceeds would strengthen the group’s capacity to execute projects as demand for digital infrastructure grows.
“As project requirements become more demanding, having the right technical capabilities, experienced personnel and working capital is essential.
The IPO proceeds will help us meet these needs by supporting project execution, including performance bonds, as well as strengthening our teams and enhancing our systems to support our continued growth,” he said at the prospectus launch today.
For the financial year ended June 30, 2026 (FY26), MyDCD recorded revenue of RM666.03 million and profit after tax of RM66.80 million, representing three-year compound annual growth rates of 52.80% and 58.48%, respectively, from FY23 to FY26.
As at Sept 30, 2026, the group had an outstanding order book of RM1.32 billion, equivalent to about 1.98 times its FY26 revenue. This comprised RM1.27 billion from data centre MEPF integration projects and RM53.08 million from maintenance services, with the balance expected to be progressively recognised as revenue up to FY32.
The group also provides maintenance services and parts for completed data centres.
As at Sept 30, 2026, it had 76 active maintenance contracts, typically lasting between one and five years.
Ow Yong said maintenance contributed about 2.9% of turnover in the latest financial year but expected the business to grow as more completed projects move into the maintenance phase.
The group typically secures maintenance work around one to two years after project completion, while some of its maintenance engagements involve data centres it completed as long as 15 years ago.
The company said maintenance work generally carries higher margins than project construction, providing an opportunity to strengthen the group’s earnings profile as its installed base expands.
MyDCD’s operations remain concentrated in the Klang Valley, with its projects largely involving enterprise and colocation data centres rather than large hyperscale facilities, which are more prevalent in Johor.
Ow Yong said the group would explore opportunities in other parts of Malaysia after its listing but had no immediate plans for overseas expansion.
“MyDCD is purely focused on doing jobs in Malaysia, primarily in the Klang Valley. Of course, we will explore opportunities in other parts of Malaysia after the listing. In terms of overseas expansion, there is currently no plan at this point.”
The group undertook some subsystem work for hyperscale facilities but was not typically involved in delivering the entire MEPF scope for such projects.
Ow Yong said MyDCD remained optimistic about the data centre market, citing continued digitalisation and the growing adoption of artificial intelligence (AI) as drivers of demand for digital infrastructure.
“Over the last 15 years, we have always been in data centres, and the industry has been growing year on year. We see data centres continuing to grow as the digital economy expands,” he added.
The group’s experience across data centre projects, from Tier I to Tier IV classifications, had enabled it to develop technical capabilities and establish long-standing relationships with customers, Ow Yong said.
“For MyDCD, this is an industry we have been working in for years, and our experience covers data centre projects across Tier I to Tier IV classifications. Our work spans the MEPF integration process, from engineering support, supply and installation to testing and commissioning.”
Ow Yong said the group’s experience across different industries and project types had helped it build relationships with key customers, some of which had lasted about 15 years.
“Together with our experience across multiple industries and project types, this has enabled us to build long-standing relationships with key customers, some spanning approximately 15 years.”
MyDCD expected opportunities to emerge as enterprises increasingly adopted AI and required more sophisticated digital infrastructure, although the extent of demand would depend on how quickly businesses adopted the technology, Ow Yong said.
“As artificial intelligence adoption grows, data centres face increasing demands for computing power, cooling and energy management, making MEPF systems increasingly important.
“For MyDCD, we remain focused on building on our experience and strengthening our execution capabilities to meet evolving customer requirements and pursue opportunities as the industry develops,” he added.
According to the independent market research report in the prospectus, Malaysia’s MEPF construction work grew at a compound annual growth rate of 15% between 2023 and 2025 to RM10.4 billion, followed by growth of 18.1% in the first half of 2026 against the corresponding period a year earlier.
The company’s shares are classified as syariah-compliant by the Syariah Advisory Council of the Securities Commission Malaysia.
TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.