Ikhmas Jaya launches prospectus pursuant to listing

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KUCHING: Ikhmas Jaya Group Bhd, a bore piling and bridging specialist company launched its prospectus yesterday pursuant to its public issue of 182 million ordinary shares of RM0.25 each in Ikhmas Jaya Group Bhd on the Main Market of Bursa Malaysia.

The group’s forthcoming listing at an offer price of RM0.57 per share entails a public issue of 126 million new shares.

“We have plans to invest approximately RM32 million of our IPO proceeds to purchase new construction equipment, which will allow us to leverage on the many opportunities that are present in the piling and construction industry.” said Datuk Ang Cheng Siong, group managing director in a statement yesterday.

“Being listed on Bursa Malaysia and the exposure to the capital markets will provide Ikhmas Jaya with a stronger platform to enhance our business and build a stronger corporate identity,” Ang further commented.

Ikhmas Jaya plans to bid for construction jobs worth up to RM5 billion by year-end.

Group managing director Datuk Ang Cheng Siong the projects include affordable homes being built by the government, new and extensions of highways, as well as infrastructure jobs, such as the Light Rail Transit Line 3 (LRT3) and Mass Rapid Transit Line 2 (MRT2).

“We expect the LRT3 contract to be tendered out at year-end.

For the MRT 2, we intend to participate in the main package or support the main contractors in the piling works,” he added.

He told a press conference this after the launch of the company’s IPO prospectus yesterday.

Ang said the company’s tender book was now at RM3 billion and its success rate in securing contracts at between 15 per cent and 20 per cent.

Going forward, he said Ikhmas Jaya was poised to continue registering commendable growth given its outstanding order book of RM346 million.

The shares comprise 26 million new shares available for application by the Malaysian public, 26 million new shares available for application by the eligible directors, employees and business associates of Ikhmas Jaya and its subsidiaries, as well as 74 million new shares available for application by way of private placement to selected investors.

It also offers for sale of 56 million shares comprising of 52 million shares available for application by way of private placement to selected Bumiputera investors approved the Ministry of International Trade and Industry as well as four million shares available for application by way of private placement to selected investors.

AmInvestment Bank Bhd is the principal adviser, underwriter and placement agent.