KUALA LUMPUR: Construction services firm SLGC Bhd aims to raise RM29.4 million through an initial public offering (IPO) ahead of its planned listing on the ACE Market of Bursa Malaysia on Oct 6.
The IPO shares are priced at 28 sen each.
Of the proceeds, RM9.2 million, or 31.4 per cent, will be used to purchase construction machinery and equipment, RM7.6 million (25.7 per cent) to repay bank borrowings and RM7.5 million (25.5 per cent) for general working capital.
The remaining RM4.6 million (15.7 per cent) will go towards estimated listing expenses, while RM500,000 (1.7 per cent) will be used to upgrade the group’s construction management software.
Managing director Yong Zhen Lin said the group’s immediate focus after listing would be on executing its existing projects, backed by an order book of about RM1.0 billion.
"We have a substantial order book. We still have RM1 billion. At the moment, our main focus is to complete these jobs over the next two to three years,” he told a press conference after the company’s prospectus launch here today.
Going forward, Yong said SLGC would continue to focus on commercial and industrial projects, while prioritising design-and-build opportunities over the next three years.
"Design-and-build is still our core, so we will focus on that. Although there are still many opportunities in conventional construction, we will prioritise design-and-build opportunities,” he said.
On the group’s competitive edge, Yong said SLGC differentiates itself by positioning itself as a solutions provider rather than a conventional contractor.
On the operating environment, general manager Gary Wong said diesel and logistics costs remain among the challenges facing the construction industry.
He said the group had taken measures to reduce its reliance on diesel-powered machinery, while improving logistics efficiency and material utilisation at construction sites.
"For example, for the tower crane and passenger hoist, we don’t use diesel. We purely use Tenaga Nasional Bhd
supply to enhance the stability of supply,” he said.
The IPO comprises a public issue of 105.0 million new ordinary shares, representing 18.8 per cent of SLGC’s enlarged issued share capital, and an offer for sale of 63.0 million existing shares, representing 11.2 per cent.
Of the 105.0 million new shares, 28.0 million will be offered to the Malaysian public via balloting, while 2.0 million will be allocated to eligible directors and employees of the group.
Another 70.0 million new shares will be offered through private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry, while the remaining 5.0 million will be placed with selected investors.
The 63.0 million offer shares will also be placed with selected investors.
Upon listing, SLGC is expected to have a market capitalisation of RM156.8 million, based on an enlarged issued share capital of 560.0 million shares and the IPO price of 28 sen per share.
Applications for the IPO open today and close at 5 pm on Sept 22, 2026.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO. - Bernama
