PETALING JAYA: Construction services company Tuju Setia Bhd’s initial public offering (IPO) has been oversubscribed by 42.1 times.
In a statement yesterday, the company said it had received a total of 21,292 applications for 682.3 million shares with a total value of RM477.6mil for the 15.9 million shares that were made available for application by the public.
It added that the bumiputra portion of shares were oversubscribed by 37.2 times, after a total of 11,006 applications for 302.8 million shares were received.
“The public portion of shares was oversubscribed by 46.9 times, after a total of 10,286 applications for 379.5 million shares were received, ” Tuju Setia said.
The IPO entails the issuance of 80 million new shares at 70 sen per share, raising proceeds of RM56mil. Managing director Wee Eng Kong said the oversubscription of the group’s shares reflected the public’s confidence in the future prospects of the company in view of higher demand for high-rise buildings, hospitals and healthcare facilities.
Tuju Setia has adopted a dividend policy of distributing 25% of its annual net profit to shareholders.
Moving forward, Wee said the group was looking to secure more projects and increase its current order book of RM953.1mil from its growing tender book of RM4bil. He added that the group’s current orderbook would sustain its profitability until 2024.
As at March 31, Tuju Setia’s RM953.1mil orderbook comprised projects such as Mutiara Central Office Suites, Riana Dutamas – Phase 2, The Pulse Residence, 121 Residences and PPAM Sofiya Residensi, among others.