Haily Group aims to raise RM20.4mil from IPO

Its promoters are Haily Holdings Sdn Bhd, See Tin Hai (right) and Kik Siew Lee.(left)

KUALA LUMPUR: Haily Group Bhd targets to raise RM20.4mil from its initial public offering (IPO) listing on the ACE Market of Bursa Malaysia.

Haily is principally a main contractor involved in building construction of residential and non-residential buildings particularly in Johor and is also involved in the provision of rental of construction machinery.

After launching its prospectus yesterday, Haily said it plans to use RM7mil for repayment of bank borrowings, and RM6mil for working capital for construction projects.

Meanwhile, it added that RM4.2mil would be used for purchase of construction machinery, equipment as well as new contract management and accounting software and office equipment as well as the remaining RM3.2mil for listing expenses.

In a statement yesterday, the group said the IPO involved a public issue of 30 million shares at 68 sen each which is expected to raise gross proceeds of RM20.40mil.

“Of the 30 million shares, it is offering 8.92 million shares to the Malaysian public, 10 million to its eligible directors, employees and persons who have contributed to the success of the group, and 11.08 million to selected investors by way of private placement, ” it added.

Moreover, Haily said there would be an offer for sale by its promoter that involves 18 million existing ordinary shares by way of private placement to selected investors which is expected to raise gross proceeds of RM12.24mil.

Its promoters are Haily Holdings Sdn Bhd, See Tin Hai and Kik Siew Lee.

Haily Group Bhd founder and executive director See Tin Hai said the listing exercise would increase the stature of the group and enhance its reputation as the group expands its customer base in Malaysia.

“We are excited to provide an opportunity for investors and institutions to participate in our equity and continuing growth, ” he added.Since 2008, the group has completed 65 building construction projects with a total contract value of RM1.29bil.

As at June 10, 2021, the group’s total secured contract value and unbilled contract value stood at RM460.04mil and RM249.58mil respectively.

Currently, Haily has 18 on-going building construction projects and two civil engineering related construction projects.

The ongoing projects are expected to be completed progressively between 2021 and 2023.

In the second half of this year, See expects Malaysia’s economy to gradually improve driven by continued improvement in global growth, trade and technology cycle, upcoming large-scale infrastructure projects as well as economic stimulus measures.

The group intends to distribute dividends of at least 30% of its annual profits attributable to its shareholders upon completion of the listing.

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