PETALING JAYA: Aneka Jaringan Holdings Bhd, which debuted on the ACE Market of Bursa Malaysia, ended its first trading day at 29 sen, with 123.71 million shares traded.
The stock opened at 35 sen, which was two sen over its offer price of 33 sen. Aneka Jaringan is principally involved in foundation and basement construction works, and other civil engineering works.
In a statement yesterday, independent non-executive chairman Datuk Tan Gim Foo said the initial public offering (IPO) is the outcome of the efforts and commitment by its team that has strived tirelessly over the years to realise its vision.
“Just as how our expertise in foundation gives our clients a solid start, the IPO gave us the platform to realise our aspirations and accelerate our expansion plans. I have every confidence that our team will scale greater heights as we move further into regional opportunities.
“This is just the beginning of a new journey for Aneka Jaringan and we look forward to building more successes in years to come.”
Maybank Investment Bank Research (Maybank IB), in a report, said the company planned to expand its fleet of construction machinery and equipment for its operations in Malaysia and Indonesia, in anticipation of increasing business opportunities in foundation and basement construction industry.
The research house also noted that Aneka Jaringan is entering the Singapore market.
“Aneka Jaringan is applying for a builder’s licence from Singapore’s Building and Construction Authority (BCA), Building Licensing Scheme (BLS) and BCA’s Contractors Registration System (CRS), which would allow the group to undertake and/or tender for any building works for public and private construction projects in the Republic.
“Barring any unforeseen circumstances, the group targets to bid for foundation and basement construction projects in Singapore in the first quarter of 2021.”
Maybank IB said the company’s core profit after tax and minority interests, excluding mainly gains on disposal of property, plant and equipment, has been trending up in recent years, growing at a two-year compounded annual growth rate of 43% over 2017 to 2019.
“Meanwhile, its blended gross profit margin improved from 14% in 2017 to 18% in 2019, mainly attributed to improvement in cost management from its foundation construction business.
“Moving forward, management believes that its earnings growth momentum should be supported by its outstanding jobs in the pipeline as well as potential new job wins.”
Aneka Jaringan’s IPO of 26.90 million shares to the public was oversubscribed by 12.68 times. There were 9,094 applications for 368.07 million shares from the public for the shares. Of the RM46.16mil in total proceeds, RM17.30mil will be used to purchase rotary drilling rigs and crawler crane. The rest will be for repayment of borrowings (RM24.26mil) and to defray IPO expenses (RM4.60mil).
Alliance Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for Aneka Jaringan’s IPO.