KUALA LUMPUR: Building contractor Inta Bina Group Bhd has appointed M&A Securities Sdn Bhd in conjunction with its proposed listing on the ACE Market of Bursa Malaysia Securities Bhd.
The company signed an underwriting agreement with M&A Securities which would be its adviser, sponsor, underwriter and placement agent for its initial public offering (IPO).
Signing on behalf of Inta Bina was its managing director Paul Lim Ooi Joo while M&A Securities was represented by managing director of corporate finance Datuk Bill Tan.
Lim said the underwriting agreement with M&A Securities brought Inta Bina another step forward in its IPO exercise.
“Our ability to provide high quality products, coupled with our consistent and timely delivery have been instrumental in attracting new and recurring contracts from our clients,” said Lim.
Under the IPO, Inta Bina will issue 107.05 million new shares representing 20% of the enlarged share capital.
Of the 107.05 million new shares, 26.76 million new shares will be available to the public via balloting, 20.01 million new shares for its eligible directors and employees, 53.53 million new shares to be placed out to selected bumiputra investors. The remaining 6.75 million new shares will be placed out to selected investors.
As part of its listing exercise, the current shareholders will offer for sale 26.76 million shares to selected investors by way of private placement. Proceeds from the IPO will be used mainly for capital expenditure to purchase various machinery and equipment, repayment of bank borrowings and general working capital requirements.
Tan said Inta Bina’s listing would put the company in a favourable position to capture future growth opportunities in the real estate construction industry in Malaysia.
“The outlook for the real estate construction industry is positive in the immediate term and is expected to post moderate growth. The industry is expected to benefit from government-led initiatives and spending particularly on affordable housing schemes,” he added.
Inta Bina Group is scheduled to be listed on the ACE Market by second quarter of 2017.