From left: Eco Asia Capital Advisory Sdn Bhd managing director Kelvin Khoo, Wawasan Dengkil Holdings Bhd independent non-executive chairman Thien Chiet Chai, Wawasan Dengkil executive director Lim Kok Seng, Wawasan Dengkil executive director Lim Soon Yik, M & A Equity Holdings Bhd managing director Datuk Bill Tan and M & A Securities Sdn Bhd head of corporate finance Gary Ting.
KUALA LUMPUR: Wawasan Dengkil Holdings Bhd
, en route to its ACE Market listing on March 25, expects to raise RM27.01 million from its initial public offering (IPO) to focus on expanding presence in large-scale projects.
The group’s executive director Lim Soon Yik said this includes residential, commercial and industrial property developments, as well as the construction of roads, highways, and utility-related projects.
"On the utilities front, we aim to capitalise on the national push for renewable energy under the National Energy Transition Roadmap by participating in more solar farm infrastructure projects,” he said at the launch of the company’s prospectus today.
The earthworks and civil engineering construction services provider has delivered over 100 projects and has more than two decades of experience since 2003.
Lee said it has submitted 44 tenders worth RM1.3 billion with an estimated win rate of about 10 per cent.
Of the 44, 38 are for earthworks and civil engineering service for property development, highways and urban rail construction projects worth a total RM724.8 million. Six are worth RM572.2 million for earthwork expertise in solar farm projects.
The company has 14 ongoing contracts with an unbilled contract value of RM378.1 million, including the Central Spine Road project and the LRT Line 3 project.
On challenges executing its projects, Lim foresees minimum impact as the 14 ongoing projects involve mostly government-linked companies (GLCs).
"Sixty (60) per cent of the projects are under GLC projects. We focused on government expenditure. Last year, the expenditure was about RM60 billion. It has now increased to nearly RM90 billion.
Lim said the government’s payment behaviour is quite secure compared to the private developers.
Wawasan Dengkil’s IPO exercise encompasses a public issue of 108.03 million new ordinary shares, representing about 20.0 per cent of its enlarged share capital, and an offer for sale of 54.01 million existing shares, representing 10.0 per cent of its enlarged share capital.
Meanwhile, 27.01 million issue shares would be made available to the Malaysian public via balloting process; 10.80 million issue shares to its eligible directors, employees and persons who have contributed to the success of the group; 40.51 million shares would be made available by way of private placement to Bumiputera investors approved by the Investment, Trade and Industry Ministry while the remaining 29.70 million shares would be made available by way of private placement to the selected investors.
The company will have a market capitalisation of RM135.03 million on listing based on an enlarged issued share capital of 540.13 million shares and an IPO price of 25 sen per share. - Bernama
