KUALA LUMPUR: Construction services firm SLGC Bhd aims to raise RM29.4mil 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, RM9.2mil, or 31.4%, will be used to purchase construction machinery and equipment, RM7.6mil (25.7%) to repay bank borrowings and RM7.5mil (25.5%) for general working capital.
The remaining RM4.6mil (15.7%) will go towards estimated listing expenses, while RM500,000 (1.7%) will be used to upgrade the company’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 RM1bil.
“We have a substantial order book. We still have RM1bil. 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 yesterday.
Going forward, Yong said SLGC will 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.”
The IPO features a public issue of 105 million new ordinary shares, representing 18.8% of SLGC’s enlarged issued share capital. — Bernama
