Azam Jaya aims to raise RM62mil from its IPO

From left: Azam Jaya alternate director to Tan Sri Joseph and head of sustainability and innovation Datuk Johannes Lo Chaw Jack, executive director Datuk Lo Vun Che @ Jessica, executive chairman Tan Sri Joseph Lo @ Lo Tain Foh, managing director Datuk Jonathan Lo Chaw Loong, Inter-Pacific Securities senior advisor of capital markets and corporate finance Denis Lim Seng Huat and head of capital markets and corporate finance Anuar Omar.

PETALING JAYA: Azam Jaya Bhd has launched its prospectus en route to a Main Market listing scheduled for Nov 11.

The Sabah-based road infrastructure construction player has 30 years of experience in the business having completed over 50 projects in the state.

The listing exercise will see the company undertake a public issue of 78.8 million new shares at 78 sen a share.

The public issue will comprise 25 million shares offered to the public, 10 million to eligible directors and employees as well as 43.8 million shares by way of private placement.

There will be an offer for sale of 50 million existing shares by way of private placement to institutional and selected investors, according to the company’s filing with Bursa Malaysia.

Azam Jaya aimed to raise RM61.5mil from the exercise with RM8mil to be used to boost construction capabilities and operational efficiencies by acquiring new machinery and equipment as well as technological upgrades.

Azam Jaya will use RM28.4mil or 46.2% of the proceeds for working capital purposes while another RM20mil (32.5%) is earmarked for repayment of bank borrowings, a statement yesterday noted.

Executive director Datuk Lo Vun Che @ Jessica stated the company has nine ongoing projects, including four work packages of the Pan Borneo Highway. Its unbilled contract value stands at RM1.45bil, providing earnings visibility up to 2028.

The company’s revenue grew from RM231.5mil in the financial year ended Dec 31, 2021 (FY21) to RM280.8mil FY23.

Azam Jaya targets to distribute at least 30% of its net profit attributable to shareholders as dividends.