PJSB IPO oversubscribed eight times


  • Business
  • Friday, 25 Jul 2003

By SABRY TAHIR

PEMBINAAN Jayabumi (Sarawak) Bhd’s (PJSB) initial public offering (IPO) comprising 4 million RM1 shares at an issue price of RM1.70 each has been oversubscribed by 8.01 times. 

Malaysian Issuing House Sdn Bhd said 21,462 applications for 36.0427 million shares were received, with the public portion of 2,885,400 shares oversubscribed by 8.53 times and the bumiputra portion of 1,236,600 shares oversubscribed by 7.79 times. 

The integrated sewage and solid waste management company is due to list on the KLSE second board on Aug 8. 

PJSB's listing exercise had involved a public issue of 6.5 million new RM1 shares and an offer for sale of 6.5 million shares at an issue and offer price of RM1.70 per share. 

Of the 6.5 million public issue shares, 4 million were offered to the public and 2.5 million for eligible employees, directors and business associates of the company and its holding company, PJS Industries Sdn Bhd. The other 6.5 million shares were reserved for private placement. 

PJSB's core business is manufacturing and installing fibre reinforced plastic sewage treatment systems and reinforced concrete sewage treatment plants, underground petroleum storage tanks and environmental services. It operates its manufacturing and fabrication from its Sungei Petani and Kuching plants.  

PJSB chairman Tan Sri Ahmad Johan said the response to the IPO was encouraging and had reflected the public's confidence not only in the business of sewage and waste water treatment but also in the growth potential of the industry. 

In his speech read out by executive director Datuk Mohammad Nong at the balloting of PJSB’s shares in Kuala Lumpur yesterday, Ahmad said the IPO was a platform to diversify into areas related to waste management. It allowed the group to be a significant player by increasing production capacity and embarking on manufacturing technologically enhanced systems that would better serve the environment 

“For every ringgit we get, we take 20 sen and give 80 sen back to take care of the environment,” he added. 

PJSB, which has forecast a net profit of RM12.5mil for the financial year ending Dec 31 (2002: RM8.9mil), is expected to largely benefit from the Government's focus on nationwide upgrading of sewerage services. 

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