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KUALA LUMPUR (April 26): Construction services company Tuju Setia Bhd, which is slated to be listed on the Main Market of Bursa Malaysia on May 19, is planning to raise RM56 million from its initial public offering (IPO).
In a statement in conjunction with its prospectus launch today, the company said its IPO involves a public issuance of 80 million new shares priced at 70 sen apiece, along with an offer for sale of 27 million existing shares.
Of the targeted amount, RM32 million will be allocated for the group’s capital expenditure to purchase new construction machinery and equipment, and building information modelling (BIM) system software to upskill design and construction activities.
Additionally, the group will acquire land and construct new storage facilities for better organisation and utilisation of machinery and equipment, and improve efficiency of its maintenance works.
Meanwhile, a further RM19 million will be allocated for working capital, and the remaining RM5 million to defray listing expenses.
Speaking at a virtual briefing today, Tuju Setia managing director Wee Eng Kong said the IPO will enhance the group’s current core competencies as well as improve its capacity in constructing high-rise buildings, design and construction of hospitals and healthcare facilities.
“Tuju Setia’s track record as a main contractor and builder of choice is built on our core values of selecting a reputable clientele, having strong technical expertise and achieving quality accreditations.
“These strong fundamentals enabled Tuju Setia to persevere despite the challenging 2020. Not only did we achieve meaningful progress in our existing projects, but also won new mandates from trusted developers. In fact, over the past 12 months and as recently as March 2021, we secured four new contracts to build high-rise buildings, bringing our order book to RM953.1 million, which will sustain our earnings till 2024.
“This IPO will ignite our next growth chapter as the funds raised will be focused on enhancing our core construction competencies, as well as positioning us better to undertake new projects from our tender book of approximately RM4 billion,” he said.
Tuju Setia will the first company to be listed on the Main Market this year.
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