KUALA LUMPUR: Tuju Setia Bhd aims to raise RM56 million from its initial public offering (IPO) on Bursa Malaysia.
The construction company is slated to be listed on the Main Market on May 19.
Managing director Wee Eng Kong said RM32 million of the proceeds will be allocated for capital expenditure to purchase new construction machinery and equipment, and Building Information Modelling (BIM) system software to upskill its design and construction activities.
Tuju Setia is also planning to acquire land and construct new storage facilities for its machinery and equipment and improve the efficiency of maintenance works.
Speaking to reporters at the launch of its prospectus today, Wee said a further RM19 million will be set aside for working capital and RM5 million to defray listing expenses.
"The funds raised will help enhance our core competencies and position us to better undertake new projects currently being tendered worth RM4 billion," he said.
As at March 2021, it has secured four new contracts to build high-rise buildings, bringing its total order book to RM953.1 million, which would sustain earnings till 2024.
The order book comprises Mutiara Central Office Suites (Cheras), Segambut's Riana Dutamas - Phase 2, The Pulse Residence in Bandar Puteri Puchong, 121 Residences in Petaling Jaya, Desa Parkcity's PPAM Sofiya Residensi, Emerald Hills - Phase 3 and 4 in Cheras, Shah Alam's TUAI Residence and the Kajang Women and Children Hospital projects.
Since 2006, Tuju Setia has completed 18 high-rise projects with an aggregated contract value of about RM2.23 billion.
Upon listing on May 19, the company's market capitalisation stands at RM222 million.
Tuju Setia’s IPO involves a public issuance of 80 million new shares priced at 70 sen a unit, together with an offer for sale of 27 million existing shares
Of the 80 million new shares, 15.9 million shares is for application by the Malaysian public via balloting, and 6.3 million shares for the group’s eligible directors, employees and persons who have contributed to the success of Tuju Setia.
Meanwhile, 31.7 million shares will be made available by way of private placement to selected Bumiputera investors approved by the Ministry of International Trade and Industry.
The remaining 26.1 million new shares, along with the 27 million existing offer-for-sale shares, will be put out to selected investors by way of a private placement.
It will also be implementing a dividend policy to distribute 25 per cent of annual net profit to reward shareholders.
Tuju Setia, via its subsidiary Pembinaan Tuju Setia Sdn Bhd, is involved in the provision of construction services primarily as a main contractor, with experience in commercial, residential, and institutional buildings mainly in the Klang Valley. - Bernama