Ikhmas Jaya plans to bid for RM5bil jobs by year-end

KUALA LUMPUR: Ikhmas Jaya Group Bhd, which is slated to list on Bursa Malaysia's Main Market on July 27, plans to bid for construction jobs worth up to RM5bil by the year-end.

Group managing director Datuk Ang Cheng Siong said the projects included affordable homes being built by the Government, new and extension 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 initial public offering (IPO) prospectus here today.

Ang said the company's tender book was now at RM3bil and that its success rate in securing contracts was between 15% and 20%.

Going forward, he said Ikhmas Jaya was poised to continue registering commendable growth, given its outstanding order book of RM346mil.

Ikhmas Jaya's forthcoming listing, at an issue price of 57 sen per share, entails a public issue of 126 million new shares.
It comprises a 26 million allocation for the Malaysian public, 26 million for eligible directors, employees and business associates, as well as 74 million for private placement to selected investors.

In addition, there will also be an offer for sale of 56 million shares, with 52 million available by way of private placement to selected bumiputra investors and four million to selected investors.

It expects to raise RM72mil in proceeds, of which RM32mil would be utilised to invest in construction equipment to facilitate the expansion of its bore piling fleet, and RM5mil to purchase an additional line of machinery and equipment for its prefabricated building system manufacturing facility.

It will also allocate RM12mil to service bank borrowings, RM18mil for working capital and the balance RM5mil for listing expenses.

As for its dividend policy, Ang said the company had fixed it at a minimum 20% from its profit after tax. - Bernama