KUALA LUMPUR: Despite clinching some RM146.3mil contract, shares in TCS Group Holdings Bhd fell over 3% as investors locked in profit.
The newly listed construction company fell 3.03%, or 1.5 sen to 48 sen with over 13 million shares traded. The company was listed last Thursday.
TCS has secured a contract worth RM146.3mil for main building works for serviced apartments in Sentul, Kuala Lumpur.
TCS said its wholly-owned subsidiary TCS Construction Sdn Bhd has received a letter of
acceptance from Southern Score Sdn Bhd — which is principally involved in construction, contractors, subcontractors and property development — for the construction of the Vista Sentul Residences.
"The contract is expected to contribute positively to the future earnings and net asset of TCS for the duration of the contract," it said.
The company’s listing exercise entailed a public issue of up to 90 million new ordinary shares, representing 25% of its enlarged total number of shares, and an offer for sale of up to 18 million existing shares at an issue price of 23 sen apiece.
Following the IPO, TCS has successfully raised a total of RM20.7mil from the public issue. The bulk of the proceeds at RM13mil or 62.8% has been earmarked for the acquisition of new construction machinery and equipment.
Meanwhile, RM4.2mil or 20.3% will be used for TCS’ working capital to partly finance existing projects and future projects.
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