KUALA LUMPUR (June 10): Southern Cable Group Bhd said it secured shareholders' approval today for proposed amendments to the company's constitution, paving the way for its transfer from the ACE Market to the Main Market of Bursa Malaysia.

The cable and wire manufacturer said in a statement today that it is aiming for the transfer listing to take place in the fourth quarter of 2021, pending approvals from the Securities Commission Malaysia and Bursa Malaysia Securities Bhd.

Southern Cable managing director Tung Eng Hai said the transfer to the Main Market in less than a year after the group's ACE Market listing showcases its bright prospects in the high-growth cables and wires market.

"We have built a track record in powering up the nation's various industries and infrastructure.

"Therefore, we expect to register resilient growth in the second half of 2021, as we meet the anticipated demand from the roll-out of megaprojects across key sectors such as power, telecommunication, infrastructure and communication, and oil and gas," he said.

The group added that it is in the process of expanding its cable and wire 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 2021, which would provide an additional annual capacity of 5,000km.

"Upon completion in the second half of 2022, the group's total production capacity for cables and wires would increase by approximately 15% to 38,780km per annum," it said.

Southern Cable noted that this expansion came on the backdrop of a favourable demand outlook for cables and wires.

Citing data from the Energy Commission of Malaysia, the group said the country's total installed electricity generation capacity grew from 24,275 megawatts in 2010 to 36,585 megawatts in 2019, while another 6,077 megawatts in new generation capacity would be required by 2030.

Tung said that the transfer to the Main Market would help the group reinforce its profile as a leading provider of cables and wires and also target to achieve more investor participation in the group's shares.

"As we continue to grow, our ongoing expansion also comes in a timely manner. The additional capacity coming on stream next year would allow us to cater to more orders, as well as broaden our product range and applications to serve more customers locally and internationally," he said.

Southern Cable's share price was trading 0.5 sen or 1.06% lower at 46.5 sen shortly before market close, giving the group a market capitalisation of RM372 million.